From the team at VOLUME 1

REAL WORLD
SUPPLY CHAIN

CSCP
R E V I E W

Prepare for the CSCP exam and learn

supply chain while you’re at it.

Over 550 Practice Questions

Instructor Support

Organized by Modules

Answer Key Provided

Updated for 2013

 CSCP Review
Volume 1

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Table of Contents

Module 1: Fundamentals of Supply Chain Management 4

Module 2: Supply Chain Strategy, Design and Compliance 58

Module 3: Implementation and Operations 145

Answers 167

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About Real World Supply Chain

We’re supply chain practitioners just like you. Over the years, we’ve heard lots
of people newer to the field complain about not finding practical supply chain
training. The available programs and materials tend to either be too theoretical
or too basic.

This gave us the motivation to use the Internet to share concrete,

straightforward, and down-to-earth supply chain insights that people could
actually use.

As a team, we’ve managed supply chains representing revenues close to $21

billion. We bring approximately 18 years of combined supply chain
experience. We hold several masters degrees.

But most important, we like to share and learn. So we invite you to please
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[email protected].

We look forward to meeting you.

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Stuff We Have to Discuss

Please bear with us as we take care of some admin stuff. You probably
already understand these, but we put together this page just to make sure.

The Partners of Real World Supply Chain LLC are not affiliated in any way with
its past or present employers. It is also not affiliated with any industry
association.

Exam questions provided here were independently developed by our

team. They are not actual test questions. While it was our supreme goal to
develop questions that represent the actual exam, there is no way a third party
can do that perfectly.

Each person’s experience, dedication and motivation will be different. So, as

you can assume, we cannot guarantee any specific results even if you
practice with the questions in this book. The purchaser or reader of this
book assumes responsibility for use of the content. Thank you for
understanding.

We worked very hard to ensure that this report is free of errors. But we’re
a small team. So some details can and do get missed. We do not assume
any responsibility for errors, omissions and varied individual
interpretations of the content. Though if you do spot an error, we’d
appreciate it if you could let us know so we can make the required
corrections.

Here’s the great part. We are committed to helping you grow and succeed. And
we don’t say those words lightly. We’d love to hear about your own challenges.
If the book alone doesn’t do the trick, then maybe a
collaborative approach will. We’ll certainly try our best.

Please contact us for anything.

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Module 1: Fundamentals of Supply Chain

Management

Section A: Supply Chain Management Concepts

Question 1
Which of the following is one of the 3Vs of supply chain management that
begins an improvement initiative?
A. visibility
B. viability
C. velocity
D. variability

Question 2
With Stage 3 supply chain management evolution, the nucleus firm begins
to focus on business processes. When did this strategic shift first occur?
A. early 80s
B. late 80s
C. late 90s
D. late 70s

Question 3
A goods and services internet broker servicing a significant number of
buyers and sellers is an example of:
A. a horizontal marketplace
B. a vertical marketplace
C. a lateral marketplace
D. a B2B marketplace

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Question 4
A product with demand that is often subject to step-function changes
resulting from changing customer needs would most likely utilize which of the
following supply chain strategies?
A. proactive
B. reactive
C. stable
D. efficient reactive

Question 5
A successful deployment of a fully integrated ERP system is a
characteristic of a:
A. Stage 1, functional focused supply chain
B. Stage 2, internally integrated supply chain
C. Stage 3, externally integrated supply chain
D. Stage 4, cross-enterprise collaboration and optimized supply chain

Question 6
A supply chain that has been designed using multiple distribution centers
located close to customers is most likely designed to support which of the
following strategies?
A. responsiveness
B. differentiation
C. mass marketing
D. focused differentiation

Question 7
Activity based costing helps by:
A. limiting budgets of ineffective activity
B. allocating budgets according to activity importance
C. tracking the effectiveness of promotions
D. recognizing negative impacts of discounts

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Question 8
All of the following are basic supply chain strategies EXCEPT:
A. stable
B. reactive
C. efficient reactive
D. proactive

Question 9
All of the following are descriptions of flows within supply chains
EXCEPT?
A. product flows
B. information flows
C. cash flows
D. labor flows

Question 10
All of the following are driving market volatility EXCEPT:
A. increased speed of information
B. intensity competition
C. shortening of product life cycles
D. increased demand for seasonal products

Question 11
All of the following are key examples of conflicts of interest that
information sharing can resolve EXCEPT:
A. flexible delivery time vs. fixed production schedules
B. product variety vs. inventory
C. cost vs. customer service
D. lead time vs. transportation costs

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Question 12
All of the following are reasons for relying on a lateral supply chain,
EXCEPT:
A. to achieve economies of scale and scope
B. to improve business focus and expertise
C. leverage advances in communication technology
D. improve level of control within the supply chain

Question 13
All of the following are true about vertical integration, EXCEPT:
A. it may grow from an entrepreneurial base by adding departments
B. it may be formed by mergers and acquisitions
C. a good example is the personal computer manufacturing process
D. a method of supply chain management that is older than the term
"supply chain"

Question 14
All of the following describe a supply chain flow, EXCEPT:
A. the flow of physical materials and services from supplier to other
entities
B. the flow of cash upstream to raw material suppliers
C. the flow of information within a supply chain
D. the flow of employees from one department to another

Question 15
All of the following statements about leadership and management are true
EXCEPT:
A. all leaders are also good managers
B. leaders exist outside the org chart
C. managers must know how to cross functional boundaries
D. managers perform the roles in the org chart

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Question 16
An organization that is supplying a commodity is most likely to implement
which of the following supply chain strategies?
A. low cost
B. best cost
C. focused low cost
D. broad differentiation

Question 17
At the early stages of a supply chain evolution, the firm:
A. lacks internal definition and is largely transactional
B. undertakes brainstorming sessions to solicit continuous
improvement initiatives
C. selects the leaders for each supply chain entity
D. establishes the sales and operations planning (S&OP) process

Question 18
During Stage 1 of supply chain management, the nucleus firm has all of the
following specific dysfunctions EXCEPT:
A. lack of coordinated flows among potential partners
B. activities are undertaken impulsively
C. forecasting is mostly guesswork
D. top management lacking control

Question 19
Each of the following is a force leading to increased supply chain
integration, EXCEPT:
A. global expansion
B. increased operational complexity and scope
C. increased market volatility
D. increase raw material cost

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Question 20
Global expansion has all of the following impacts on supply chains
EXCEPT:
A. increased complexity
B. additional lead-time
C. increased political complexities
D. reduced number of stock keeping units

Question 21
If an organization has a strategy of supplying a large number of SKUs to
many customer segments located in multiple regions around the globe
most likely which implement which of the following supply chain
strategies?
A. focused differentiation
B. broad differentiation
C. focused low cost
D. best cost

Question 22
In general, the supply chain should be organized by:
A. a channel master
B. a powerful stakeholder
C. the investors
D. the consumers

Question 23
In the SCOR model, the MAKE process involves all of the following
EXCEPT:
A. manage transportation
B. produce and test the products
C. identify supply sources
D. manage equipment and facilities

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Question 24
In the SCOR model, the RETURN process involves all of the following
EXCEPT:
A. return of data and feedback from consumers
B. return of defective products
C. return of products in need of maintenance
D. return of products in excess of order

Question 25
Inventory write-off is probably the biggest concern in supply chains
designed to support which of the following business strategies?
A. differentiation
B. best cost
C. low cost
D. targeted cost

Question 26
Low margin products for specific customer needs are best served by
which of the following supply chain strategies?
A. low cost
B. best cost
C. focused low cost
D. broad differentiation

Question 27
Organizations are transforming from organizations focused on lowest
standard costs, maximized inventory turns, quality, etc. to organizations
focused on:
A. end-to-end total supply chain solutions
B. regional supply chain operations
C. external supply chain partners
D. minimizing working capital

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Question 28
Sharing supply chain information to the extended network is a key
characteristic of:
A. external integration
B. cross-enterprise collaboration
C. internal integration
D. functional focus

Question 29
Standardizing internal business processes is a key initial step to move a firm
from:
A. functionally focused to externally integrated
B. externally integrated to cross-enterprised collaboration
C. functionally focused to internally integrated
D. internally integrated to externally integrated

Question 30
Suppliers provide all of the following to a supply chain, EXCEPT:
A. materials
B. energy
C. services
D. demand

Question 31
Supply chain management effectiveness depends on:
A. forecast accuracy
B. short manufacturing lead-times
C. accurate and complete data
D. the absence of quality issues

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Question 32
Supply chain management should primarily focus on:
A. squeezing costs out of one or more activities in the chain
B. producing value for one stockholder in the chain
C. formulating steps to produce a leaner chain
D. creating value across entities

Question 33
Supply chains are best viewed as:
A. a collection of processes
B. a set of processes that can be substituted for one another
C. a collection of activities that need to be done in sequential order
D. a set of linked processes

Question 34
Supply chains include all of the following EXCEPT:
A. entities
B. processes
C. business intelligence systems
D. transportation networks

Question 35
Tax planning is most applicable for:
A. small organizations that have limited budgets
B. medium sized organizations that seek to expand
C. large multinational organizations looking for opportunities to locate
assets
D. individual elements of the supply chain with large tax liabilities

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Question 36
The firm that champions the move from Stage 2 supply chain development to a
Stage 3 or Stage 4 supply chain development is referred to as all of the
following EXCEPT
A. nucleus firm
B. market dominant firm
C. channel master
D. orchestrator firm

Question 37
The Ford Motor Company supply chain is an example of:
A. a lateral supply chain
B. a vertical supply chain
C. an extended enterprise
D. the SCOR model

Question 38
The main focus of supply chain management is to:
A. reduce cost along the whole chain
B. identify and reduce redundant steps along the supply chain
C. creating net value
D. outsource activities to other suppliers to reduce lead times

Question 39
The most important benefit of vertical integration is:
A. leaner structure
B. control
C. visibility
D. transparency

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Question 40
The Sarbanes-Oxley Act (SOX) is focused on:
A. corporate governance as it relates to protecting investors
B. does not apply to supply chain processes
C. procurement from overseas vendors only
D. only applies to financial institutions

Question 41
The supply chain provides value to the customer by doing all of the
following EXCEPT:
A. delivering quality products and services
B. making the product affordable
C. ensuring availability
D. increasing supply chain efficiencies

Question 42
There are nine Level 1 SCOR metrics. All of the following are part of the nine
EXCEPT:
A. upside supply chain adaptability
B. downside supply chain adaptability
C. upside supply chain flexibility
D. downside supply chain flexibility

Question 43
Tier 2 suppliers:
A. provide materials or services to suppliers of the producer
B. provide lower quality raw materials
C. serve only as a back-up to Tier 1 suppliers
D. supply raw materials to the secondary products of a company

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Question 44
Vertical integration involves which of the following?
A. increasing departments to delegate more work
B. designate third parties to monitor the supply chain for an objective
view of the process
C. bringing supply chain activities in-house
D. create self-sufficient entities in the chain

Question 45
What is one advantage of the SCOR system?
A. It measures cross-organization and cross-functional supply chain
activity
B. It is a premium system that requires purchase of a license
C. It is designed for vertically integrated supply chains
D. The software that it uses is state of the art

Question 46
What provides the foundation for a supply chain to move to Stage 3 and
ultimately Stage 4 of supply chain development?
A. MPS
B. ERP
C. DRP
D. MRP

Question 47
What two processes do Tier 2 suppliers perform in the SCOR model?
A. make and deliver
B. deliver and return
C. plan and make
D. source and make

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Question 48
Which of the following are examples of other stakeholders outside the
basic supply chain model?
A. governments
B. competitors
C. universities
D. trade organizations

Question 49
Which of the following best describes the term lateral supply chain?
A. processes are no longer performed internally and become
dependent on outsourced collaborations
B. the supply chain grows incrementally
C. a supply chain that is applicable in various industries
D. a supply chain that holds significant centralized control of processes

Question 50
Which of the following does financial value creation need to consider
most?
A. creation of value to the customer
B. reduction of cost to improve the bottom line
C. reduction of cost of holding inventory
D. creation of value at the production element of the chain

Question 51
Which of the following flows from customers back upstream through the
supply chain from distributors to manufactures and to suppliers?
A. cash
B. physical materials and services
C. information
D. returns

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Question 52
Which of the following is a key supply chain process?
A. forecast
B. source
C. benchmark
D. analyze

Question 53
Which of the following is not an "entity" of a supply chain?
A. producer
B. supplier
C. customer
D. manager

Question 54
Which of the following is not one of the five management processes used by
the SCOR model?
A. plan
B. source
C. make
D. analyze

Question 55
If an organization was attempting to provide a low cost differentiated
product, it would implement which of the following strategies?
A. low cost
B. best cost
C. broad differentiation
D. focused differentiation

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Question 56
A company can save on taxes by purchasing software designed to:
A. locate all tax loopholes applicable to operations
B. determine the right tax payments of the company
C. comply with the Sarbanes-Oxley Act
D. reduce global inventory levels

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Section B: Supply Chain Alignment with Business Strategy

Question 1
A shift to a customer-focused culture will mainly focus on:
A. internal and external customers
B. recipients of department outputs
C. recipients of the firms goods
D. beneficiaries of the firms work

Question 2
A supply chain that can keep functioning despite disruptive events is an
example:
A. of supply chain flexibility
B. of supply chain manageability
C. of supply chain risk management
D. of supply chain adaptability

Question 3
A critical business goal has become:
A. customer for life
B. excellent customer feedback
C. quality rather than quantity customers
D. higher profits despite higher costs of doing business

Question 4
A primary concern in building relationships is uncertainty. This is most
accurately defined as:
A. the chances that a product will have great variability in quality
B. the risk that the company will lose the supplier to a competitor
C. the chances that a service will not be needed in the future
D. the risk that the good or service may not be available in the future

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Question 5
All of the following are attitudes and cultures required to create integrated
supply chain networks EXCEPT:
A. competitive
B. far-seeing
C. collaborative
D. willingness to reward

Question 6
All of the following are examples of standard business strategies EXCEPT:
A. least cost
B. differentiation
C. focus
D. emerging

Question 7
All of the following are specifically part of the APICS definition of corporate
strategy EXCEPT:
A. the strategy specifies how to satisfy customers
B. the strategy specifies how to make the business grow
C. the strategy specifies how to manage the organization
D. the strategy specifies how to make the supply chain profitable as a
whole

Question 8
All of the following are supply chain advancements that move a supply
chain from an externally integrated supply chain to a cross-enterprise
collaboration supply chain EXCEPT:
A. shared business objectives
B. real-time or near real-time information sharing
C. network optimization
D. ERP implementation

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Question 9
All of the following statements are true regarding the supply chains
relationship to corporate strategy EXCEPT:
A. Supply chain strategy can be independent of the corporate strategy.
B. The corporate strategy can be to develop different supply chains for
different products.
C. The infrastructure of the chain should act in concert to achieve
objectives.
D. A supply chain is constructed of organizations, people, processes
and

Question 10
Based on the Rice and Hoppe view of SC versus SC, the practical
benefits of a coordinated chain work best with a chain that has:
A. 4 tiers, two upstream, one downstream
B. 3 tiers, one down, one up
C. 4 tiers, one up, two down
D. 5 tiers, two up, two down

Question 11
Consolidation has had the biggest impact on:
A. the number of available suppliers to choose from
B. the supply side
C. the leverage of customers
D. transportation costs

Question 12
Cross-enterprise collaboration and real-time data across the extended
enterprise are characteristics of:
A. stage 1 technical communications
B. stage 3 technical communications
C. stage 4 technical communications
D. state 2 technical communications

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Question 13
During strategic planning, supply chain management places an emphasis
on:
A. business process monitoring
B. business process transparency
C. business process accountability
D. business process excellence

Question 14
How does designing and building the right supply chain gain an edge over
competition?
A. provides a reference for business decisions
B. reduces internal confusion regarding roles and responsibilities
C. allows flexibility amidst constant change and surprise
D. facilitates effective communication with suppliers

Question 15
If customers are asking for deeply discounted products, what should the
supply strategy focus on?
A. speedy delivery
B. flexibility
C. low inventory
D. security

Question 16
In a customer-focused business, products are:
A. designed to appeal to a large group of customers
B. perceived similarly by all customers
C. designed primarily based on customer need
D. essentially static

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Question 17
In designing the supply chain strategy, what is one of the most important
considerations?
A. customer needs
B. management capabilities
C. availability of suppliers
D. geographical coverage

Question 18
Increased supply chain visibility and role-based access to supply chain
information MOST likely first occurs in:
A. stage 1 technical communications
B. stage 4 technical communications
C. stage 2 technical communications
D. stage 3 technical communications

Question 19
Of the following, which is least important when planning a shift to greater
integration across the supply chain?
A. reengineering of communication and collaboration processes
B. stronger alliance between smaller firms to better compete with rivals
C. greater sharing of information between parallel departments
D. involvement of multiple teams on the work process

Question 20
One benefit of demand-driven supply chain is:
A. average inventory levels are lower
B. availability or raw materials are not as important
C. sales increase due to higher customer focus
D. manufacturing does not hold significant control

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Question 21
One of the challenges of the transition of a functional organization to
business process excellence is:
A. the development of new roles that are cross functional
B. the development of roles with specific supply chain responsibilities
C. the development of roles with emphasis on collaboration
D. the development of roles that relate to processes

Question 22
The competitive differentiator in todays business environment is:
A. shortest delivery time
B. longest warranty period
C. technology level and ease of use
D. price and value

Question 23
The first of the five best practices for supply chain is:
A. operations and logistics
B. change management
C. information technology
D. strategic sourcing and supplier management

Question 24
The following are key to building collaborative relationships EXCEPT:
A. leveraging of technology
B. senior leadership commitment and support
C. long-term view and trust building
D. transaction focused

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Question 25
The highest level of system integration is:
A. interfacing technology
B. disconnected technology
C. multi-enterprise integrated technology
D. internally integrated technology

Question 26
The primary force driving the change to a customer focused business
environment is:
A. customers looking for better value-for-money deals
B. competitors striving to capture market share from the most important
customers
C. customers raising their expectations for quality trouble free products
and services
D. competitors developing improved products at a faster rate

Question 27
There are 8 identified barriers to collaboration specified by APICS. Which of
the following is not one of the APICS identified barriers?
A. bottlenecks caused by weaker partners
B. partners measuring immediately ROI
C. each supply chain element maximizing it profits
D. managers delaying collaboration

Question 28
What impact has the focus on CRM and SRM had on business mindset?
A. lower costs
B. greater integration
C. shorter cycle times
D. focus on bottom-line results

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Question 29
What is the first step in creating a customer-focused business?
A. identify customer needs
B. implement CRM program
C. create customer segment map
D. align business to support a customer focus

Question 30
When transitioning from a forecast driven to a demand driven strategy, the
foremost challenge is:
A. forecasting the raw material supply given production doesn’t start
until there is a demand
B. moving the push/pull frontier back up the chain
C. reducing inventory without also lowering customer satisfaction
D. enhancing customer service while reducing costs

Question 31
Which is true when discussing the strategic importance of a product or
service?
A. Products / services should be done in house if the company cannot
afford mistakes.
B. Products / services should be outsourced if the company can afford
it.
C. Products / services that can be done cheaply should be done in-
house.
D. Products / services from multiple suppliers are sources of redundant
costs.

Question 32
Which of the following is a benefit of collaboration?
A. open sharing of knowledge
B. network wide visibility
C. clear roles and responsibilities
D. rapid project results

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Question 33
Which of the following is not a building block of collaborative
relationships?
A. process based arrangements
B. focus on the entire supply chain
C. siloing of data
D. varied types of commitment

Question 34
Which of the following is not a specific area of strategic planning?
A. supply chain processes
B. information sharing
C. supply chain metrics
D. technology

Question 35
Which of the following is not true when discussing supply chain versus
supply chain situations?
A. There are many examples of groups of companies allied as partners
that compete with other groups of companies.
B. Two different and competing supply chains can have the supplier.
C. Individual companies compete based on their supply chain
management capabilities.
D. A channel master will sometimes cause hardship on other elements
of the chain.

Question 36
Which of the following is part of the second task of management when
building collaborations?
A. establish reciprocal interdependence
B. emphasize equity in profits
C. planning regular meetings among managers
D. monitor the benefits and flaws of any design

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Question 37
Which of the following may happen when a competitor comes up with a
superior product or process?
A. The supply chain is threatened and at the same time energized.
B. The supply chain collapses and gives way to the improved product
or process.
C. The supply chain copies the new process exactly.
D. The supply chain maintains the status quo, banking on the fact that
they have a good enough product / process.

Question 38
Which of the following terms best describes the development and
management of supplier relationships to acquire goods and services in a
way that aids in achieving the immediate needs of a business?
A. strategic sourcing
B. traditional sourcing
C. supplier management
D. SRM

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Section C: Supply Chain Design and Improvement

Considerations

Question 1
A balanced scorecard (BSC) will feature:
A. customer feedback
B. customer perspective
C. customer satisfaction
D. customer demand

Question 2
A supply chain can best assess itself by:
A. tracking customer satisfaction
B. noting total reduction in costs
C. evaluating the improvements initiated
D. comparing itself to a benchmark

Question 3
All of the following are performance indicators for a functional product
supply chain strategy EXCEPT:
A. suppliers are chosen for cost and quality
B. minimal inventory
C. aggressive reduction of lead times
D. maximum performance product design

Question 4
All of the following require more agile and adaptable supply chains,
EXCEPT:
A. market volatility
B. rapidly changing customer segments
C. short product life cycles
D. stable demand with low forecast bias

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Question 5
Process assessment needs to answer what questions?
A. How are we doing? and How much do we want to improve?
B. How are we doing? and How well is the competitor doing?
C. What needs to be done? and Who does it better?
D. How fast can it be achieved? and Who can help do it faster?

Question 6
The Level 1 metric Perfect Order Fulfillment is used to measure which
performance attribute?
A. supply chain reliability
B. supply chain costs
C. supply chain flexibility
D. supply chain responsiveness

Question 7
Using process benchmarking to assess a process is a:
A. quantitative approach
B. scientific approach
C. qualitative approach
D. methodical approach

Question 8
What statement best defines the term "benchmarking"?
A. Establishing goals based on comparisons with competition
B. A processes for flagging or marking improvement areas in the
supply chain
C. Internal review of processes
D. A set of metrics for senior management reporting

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Question 9
Which is a proper source of benchmarks?
A. performance of other organizations
B. management goals
C. historical performance
D. current performance

Question 10
Which is least true when choosing KPIs?
A. Monitoring of KPIs is at designated intervals.
B. KPIs should cover the 4 balance scorecard areas.
C. KPIs should cover areas that can be measured.
D. A large number of KPIs is necessary to see the whole picture.

Question 11
Which of the following is true about managing the supply chain for
financial
A. it plays a role in reducing the tax burden of the corporation
B. cost reduction is the ultimate goal
C. increasing revenue is more important in the long term
D. reducing average inventory levels is the primary focus

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Section D: Inventory Management

Question 1
The quantity of inventory that a stage of the supply chain either produces or purchases
at a given time is
A. an order
B. a job
C. shipment
D. a lot or batch

Question 2
Economies of scale in purchasing and ordering motivate a manager to
A. increase the lot size and cycle inventory
B. decrease the lot size and cycle inventory
C. eliminate inventory
D. increase the lot size and reduce cycle inventory

Question 3
The cost of carrying one unit in inventory for a specified period of time, usually one
year, is referred to as
A. the material cost
B. the fixed ordering cost
C. the holding cost
D. the purchase price

Question 4
What is the type of inventory cost that accounts for housing the inventory?
A. lost sales
B. setup costs
C. holding costs
D. ordering costs

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Question 5
Which is not an explicit need for holding inventory in the supply chain?
A. to meet future demand
B. to limit damage due to natural disasters
C. to hedge against price fluctuations
D. to cover time required for transportation

Question 6
Items to support manufacturing, support activities and support customer
service are referred to as:
A. inventory
B. raw materials
C. finished goods
D. business processes

Question 7
Inventory management spans:
A. finished goods
B. the internal supply chain
C. procurement of raw materials through finished good packaging
D. ordering of raw materials to sale of finished goods to customers

Question 8
Successful inventory management must be occurring when the following KPI
trends are observed:
A. Increasing inventory turns and increasing customer service levels
B. Inventory value is decreasing and inventory turns are decreasing
C. inventory write-offs are decreasing and inventory turns are
decreasing
D. inventory turns are increasing and manufacturing yields are
increasing

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Question 9
Assuming constant inventory levels, an increase in variability across the
supply chain most likely will result in:
A. constant customer service levels
B. an increase in demand variability
C. a decrease in demand variability
D. decreased customer service levels

Question 10
All things being equal, an increase in demand variability results in:
A. Increased supply chain inventory levels
B. decreased supply chain inventory
C. increased inventory turns
D. decreased inventory value

Question 11
All things being equal, a decrease in manufacturing lead-times results in:
A. decreased customer service levels
B. increased work-in-process inventory
C. increased finished good inventory
D. decreased supply chain inventory levels

Question 12
An increase failure rate of manufacturing operations requires additional
supply chain inventory to maintain:
A. forecast error performance
B. the same customer service levels
C. inventory value
D. inventory write-offs

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Question 13
Inventory aggregation opportunities within the supply chain present
inventory reduction opportunities by:
A. optimizing variability
B. pooling variability
C. increasing demand variability
D. reducing forecast error

Question 14
Economic order quantity is associated with:
A. aggregate level inventory management
B. supply chain planning
C. supply chain design
D. item level inventory management

Question 15
Inventory that includes value added but has not been released as finished
goods is considered:
A. work-in-process inventory
B. finished good inventory
C. raw material inventory
D. safety stock inventory

Question 16
Material on a boat between two nodes on the supply chain is considered:
A. released inventory
B. in-transit inventory
C. finished good inventory
D. buffer inventory

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Question 17
A manufacturing site might decide to increase bulk inventory levels in
anticipation of:
A. at risk incremental demand
B. patent expiration that is anticipated to decrease demand
C. unconstrained capacity
D. reduced raw material costs

Question 18
All things being equal, an increase in manufacturing batch size results in:
A. increased safety stock
B. increased cycle stock
C. increased buffer stock
D. decreased cycle stock

Question 19
All things being equal, lowering the acquisition cost of a key raw material
will:
A. increase total inventory value
B. reduce work-in-process inventory
C. have no impact on total supply chain inventory value
D. reduced finished good standard cost

Question 20
Storage cost, cost of capital and risk cost are all included in:
A. landed cost
B. inventory carrying cost
C. procurement cost
D. standard cost

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Question 21
Extended stock-outs that can not be buffered by inventory external to the
supply chain most likely results in:
A. increased capacity
B. increased customer service levels
C. increased total supply chain inventory value
D. lost sales

Question 22
Raw materials, work-in-process inventory and finished good inventory are:
A. classified as long-term assets on the balance sheet
B. classified as current assets on the balance sheet
C. expenses on the balance sheet
D. expenses on the statement of cash flows

Question 23
A simple way to calculate an average inventory level is to:
A. add to consecutive year-end inventory values from the balance
sheet and divide by two
B. divide cost of goods sold on the income statement by 12
C. assume inventory levels equal to year-end inventory levels on the
balance sheet
D. divide annual revenue by three

Question 24
All things being equal, increasing inventory levels:
A. increases a company's cash position on the statement of cash flows
B. lowers a company's cash position on the statement of cash flows
C. decreased current assets on the balance sheet
D. increases cost of goods sold on the income statement

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Question 25
Inventory turns is calculated by:
A. dividing revenue by average inventory value
B. dividing COGS by average inventory value
C. multiplying COGS by inventory value
D. dividing COGS by 12

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Section E: Logistics Fundamentals

Question 1
A fourth-party logistics partner will:
A. perform the less important logistics functions
B. take over one or two logistics functions
C. will take over functions that the 3rd party logistics can no longer
handle
D. take over the entire logistics function for a firm

Question 2
All of the following are 3PL benefits EXCEPT:
A. greater technological flexibility
B. greater business flexibility
C. improved business focus
D. improved service to customers

Question 3
All of the following are other terms for reverse supply chain EXCEPT:
A. retrogistics
B. retrieval chain
C. aftermarket logistics
D. aftermarket supply chain

Question 4
In a global complex supply chain, physical inventory needs to be replaced with
information for all of the following reasons EXCEPT:
A. financial pressures
B. global supply chains
C. reduced inventory levels
D. risk of product obsolescent

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Question 5
Outsourcing of parts or all of the logistics operations is referred to as:
A. third-party logistics
B. offshoring
C. make or buy
D. contracted warehousing

Question 6
The main distinction between 3PL and 4PL is:
A. in 4PL, the logistics specialist takes over the entire logistics
operation
B. in 3PL, the logistics provider can take on subcontractors for the
project
C. a 4PL will focus on at most, one or two processes.
D. not all 4PLs can be considered 3PLs, but all 4PLs are 3PLs

Question 7
The primary objective of transportation is to carry goods & materials
between supply chain partners & customers and to:
A. minimize cost in time, money and environmental degradation
B. ensure the fastest but safest route for the goods
C. keep track of those goods to avoid loss and delay
D. provide temporary storage for in-transit inventory

Question 8
What is most true about product design in terms of supply chain?
A. It has to mitigate the expenses related to product development.
B. It is a process that spans all the work between marketing and
production.
C. It is focused on delivering the best product within the set budget.
D. It has to account for the entire product life cycle.

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Question 9
When outsourcing of logistics includes the overall management by a
contractor, the setup is called:
A. 3PL
B. 4PL
C. collaborative planning
D. warehouse management

Question 10
Which is most true about the payoffs for reverse logistics?
A. There are 5 different payoffs, the most important of which is the
improvement of company reputation.
B. There are at least 7 different payoffs, all of which are non-profit
benefits.
C. There are 10 payoffs, 90% of which are monetary payoffs.
D. There are at least 13 payoffs, 3 of which are non-profit and they are
arguably the most important.

Question 11
Which is the least important concern when considering outsourcing
logistics?
A. contractor customer skills
B. contractor special strengths
C. contractor ability to hire the most qualified partners
D. contractor vehicle age

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Section F: Market Segmentation

Question 1
Actual customer descriptions of the functions and features desired to meet
their requirements is an example of:
A. voice of the customer
B. focus group output
C. customer feedback
D. test group results

Question 2
All of the following are specific sources of customer information EXCEPT:
A. transaction records
B. sales representatives
C. inventory positions
D. distribution points

Question 3
Each of the following are benefits from voice of the customer (VOC),
EXCEPT:
A. develops solutions to problems with existing products
B. gives feedback to topics that a business would not normally receive
C. allows customer to talk freely
D. reduces the need for product development

Question 4
For the customer, effective channels have the following characteristics,
EXCEPT:
A. accessible
B. secure
C. multi-level
D. flexible

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Question 5
Leading edge organizations are driving to increase profits from which
customer segment?
A. high potential
B. small businesses
C. lifetime
D. high yield

Question 6
Service representatives as a source of customer information should be able
to deliver:
A. quick and correct solutions to customer problems after getting all the
pertinent data
B. how products or services are currently being used and how
customers would like to use them
C. excellent customer service to get the proper feedback from
customers
D. an extensive report on their experiences with customers to help
gauge customer service level

Question 7
The process of customers changing their buying preferences because they
find better and/or cheaper products and services elsewhere is best
described as:
A. switching
B. customers becoming more vulnerable
C. customers beginning to discontinue
D. churn

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Question 8
What has been credited as being the foundation for a technology driven
CRM business model?
A. VOC
B. SFA
C. IVR
D. EMA

Question 9
What the customers want, why they want it and how much they want is
termed as the:
A. customer profile
B. value profile
C. customer needs
D. value analysis

Question 10
When creating a customer-focused business, after the appropriate
customers have been identified and CRM programs have been
implemented, it is important to:
A. measures the performance of the CRM programs through routine
customer contact and feedback
B. automate the customer feedback process
C. establish programs designed to gauge supplier satisfaction
D. minimize communications to gain efficiencies

Question 11
Which of the following is considered the heart of the business by
customers who value service?
A. the call center representative
B. the customer service department
C. the call center
D. the customer service representative

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Question 12
Which of the following is one of the most important factors affecting a
typical customers decision to purchase?
A. product design
B. anticipated product life
C. product manufacturing location
D. product quality

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Section G: Demand Planning

Question 1
A key demand variable included in retail-level planning and optimization is:
A. substitution
B. seasonality
C. customer service level
D. development lead-time

Question 2
A specific key feature of the Delphi forecasting method is:
A. the maintenance of anonymity throughout the process
B. the remarkable success when adapted to forecasting
C. the use of a panel of experts
D. the applicability of use when data is non existent

Question 3
All of the following are dimensions that forecasts contain EXCEPT:
A. quantity
B. item
C. delivery
D. time

Question 4
All of the following are leading indicators that financial experts monitor to
predict trends EXCEPT:
A. housing starts
B. farm income
C. steel production
D. stock index prices

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Question 5
Alternating cyclical movements when tracked properly can last:
A. through months of demand
B. through the product life cycle
C. for years
D. through multiple product launches

Question 6
Demand forecast error will effect:
A. a retailers current inventory
B. the customers available choices
C. the manufacturers planned production
D. each supply chain partners orders and operations

Question 7
Dependent demand is based on:
A. the calculated demand of components needed
B. the estimated demand of components needed
C. the forecasted amount of components needed
D. the inventoried amount of components needed

Question 8
Exponential smoothing requires all of the following inputs, EXCEPT:
A. last period's forecast
B. a smoothing constant
C. last period's actual demand
D. geometric constant

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Question 9
Forecast error is simply:
A. forecast less demand
B. demand less forecast
C. current demand less previous demand
D. forecast less remaining stock

Question 10
If using an exponential smoothing forecasting algorithm, firms generally use
a smoothing constant that falls between:
A. .05-.75
B. .01-.49
C. .05 -0.5
D. .01-.051

Question 11
Independent demand is best defined by:
A. demand for the finished product
B. demand forecast of an unbiased third party provider
C. demand that is based on actual orders
D. demand for manufacturing raw materials

Question 12
Intrinsic forecasting focuses on:
A. data about demand for the product itself
B. variables that affect the demand of the product
C. leveraging the collective experience possessed by employees
D. the inherent value of the product to the customer

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Question 13
Random variations generally have:
A. long-term effects on the trend line
B. minor effects that have a cumulative effect on the trend line
C. a drastic but easily explainable effect on the trend line
D. short-term effect on the trend line

Question 14
The effect of a natural disaster can:
A. be devastating to demand
B. be eliminated by careful preparations
C. be mitigated or at least minimized by planning
D. affect demand permanently

Question 15
The general principle at work when basing forecasts on a larger product
group is:
A. more data, more accuracy
B. risk pooling
C. balancing high-low forecasts
D. determining true average

Question 16
The nave forecasting algorithm assumes demand will:
A. be the same for the next period as it was for the previous period
B. will decrease steadily as the product life cycle goes on
C. will increase at a specific rate
D. will dramatically drop after a predetermined time

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Question 17
The statement forecasts for near-term demand are more accurate than
forecasts for long-range demand:
A. is true because focusing on a smaller time frame has less factors to
deal with
B. is false because historical data can cover large periods of time
C. is true because the further out in the future you are trying to predict,
the more chance and change that can occur and derail estimates
D. is false because long term demands do not fluctuate as wildly as
short term demand

Question 18
The Voluntary Interindustry Commerce Standards Association formalized
CPFR in:
A. 2001
B. 2000
C. 1999
D. 1998

Question 19
To reduce forecast error, forecasts generally should be reviewed at least:
A. monthly
B. annually
C. at the start of the fiscal year
D. at the end of special events

Question 20
When do corporations employ qualitative forecasting?
A. When products are low value
B. When products are at the end of life stage
C. For new product introductions
D. When reliable historical sales data is available

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Question 21
Which of the following is LEAST likely to improve the accuracy of
forecasting and planning models?
A. sharing of real-time data
B. increased data reliability
C. routine benchmarking of algorithms against historic data
D. dynamic marketplace

Question 22
Which of the following is true about forecasting?
A. It should be done once a year
B. It should be conducted by the supply chain leadership
C. It is more accurate for groups than for individual items
D. It is better to under-forecast rather than over-forecast

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Section H: Customer Relationship Management (CRM)

Concepts

Question 1
Customer relationship management (CRM) is best described as:
A. a focus on managing long term supplier relationships
B. a marketing philosophy based on putting the customer first
C. managing customers to promote your products
D. transactional guidelines when dealing with customers

Question 2
Customer Relationship Management requires a shift to:
A. a supplier focused organization
B. a cost focused supply chain organization
C. a customer driven organization
D. a customer focused marketing strategy

Question 3
A key aspect of sales operations for effective CRM is:
A. effective alliance management
B. effective strategic partnerships
C. data aggregation
D. optimizing the customers experience

Question 4
A key goal of CRM is the creation of:
A. win back customers
B. life cycle customers
C. lifetime customers
D. new customers

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Question 5
Customer retention is a key benefit of:
A. SRM
B. supply chain optimization
C. CRM
D. forecast error improvements

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Section I: Supply Management Concepts

Question 1
A merger or an acquisition is an example of:
A. linked competitive vision
B. backward integration
C. shared partnership
D. strategic alliance

Question 2
A rapid response strategy is designed in particular to address:
A. changes in customer orders
B. market changes
C. emergency situations
D. management decisions

Question 3
According to APICS, strategic sourcing is best defined as:
A. a comprehensive approach for locating and sourcing key material
suppliers, which often includes the business process of analyzing
total-spend-for-material spend categories
B. structured approach to negotiating best price while ensuring quality
C. methodology to achieve lowest possible purchase price
D. collaboration between supplier and producer in product
development

Question 4
All of the following are different types of supplier relationships EXCEPT:
A. buy on the market
B. ongoing relationship
C. partnership
D. sell the market

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Question 5
As outsourcing increases and supply chains become more and more
complex, which of the following increases MOST significantly in
importance?
A. voice of the customer
B. forecasting
C. transportation
D. collaboration

Question 6
If goods from domestic and foreign sources are of equal quality and cost
becomes the main consideration, which of the following provides a
meaningful comparison?
A. landed cost only
B. purchase price plus packaging and shipping cost
C. purchase price plus duties and taxes
D. purchase price plus landed cost

Question 7
Landed cost of items in a foreign market may include all of the following
EXCEPT:
A. special packaging
B. currency exchange
C. import duty
D. in-market warehouse costs

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Question 8
Multinational corporations when rethinking procurement strategies should
plan to:
A. set up multiple small regional sourcing centers to divide the tax
burdens
B. set up a select number of sourcing centers to take advantage of low
tax regions
C. set up a sourcing centers to reduce large centralized costs
D. set up a central global sourcing center to take advantage of a low
tax region

Question 9
Outsourcing of jobs / processes occurs:
A. from developed to less developed countries
B. from developed to developed countries
C. from less developed to developed countries
D. between countries of all levels of development

Question 10
The least common reason for outsourcing CRM is:
A. costs associated with CRM is defrayed when outsourced
B. CRM is not the company’s core competency
C. CRM can now directly contribute to bottom line when outsourced
D. CRM vendors are better equipped

Question 11
What is a key reason for the move to greater integration with suppliers?
A. consolidation of the industry
B. technology transfer
C. improved relationships
D. reduce complexity

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Question 12
What is one negative effect of strategic alliances?
A. It is difficult to gain buy-in of stakeholders
B. It increases cycle time
C. It may decrease the level of competition
D. It requires a large amount of resources

Question 13
What is one SRM function not typically outsourced?
A. contract deployment
B. sourcing
C compliance management
D. supplier selection

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Module 2: Supply Chain Strategy, Design and

Compliance

Section A: Sustainability

Question 1
The triple bottom line associated with sustainability includes all of the
following EXCEPT:
A. economic benefits
B. health benefits
C. social benefits
D. environmental benefits

Question 2
All of the following are leading indicators EXCEPT:
A. building permits issued
B. initial unemployment insurance claims
C. plant equipment orders
D. reduced inventory levels

Question 3
All of the following are key aspects of ISO EXCEPT:
A. mandatory
B. market-driven
C. registration
D. generic management system standards

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Question 4
Environmental management standards are outlined in which ISO
certification?
A. 14000
B. 9000
C. 6000
D. 11000

Question 5
A reliable supply chain contributes to environmental sustainability by:
A. optimizing energy utilization
B. implementing 6 Sigma projects
C. reducing wasted associated with product discards
D. consolidating manufacturing locations

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Section B: Risk Management

Question 1
A list of compliance issues will most likely include all of the following
EXCEPT:
A. tariffs and taxes
B. financial reporting
C. regional customs
D. environmental issues

Question 2
A tactic for managing risk is:
A. supplier categorization
B. supplier classification
C. supplier alliance
D. supplier certification

Question 3
C-TPAT is an acronym for:
A. Customs-Trade Partners Against Terrorism
B. Customs-Trade Partnership Against Terrorism
C. Customs-Trade Partnership Against Terrorists
D. Customs-Trade Partners Against Terrorists

Question 4
ISO certification renewal is done every:
A. 2 years
B. 3 years
C. 4 years
D. 5 years

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Question 5
The following are typical liability concerns, EXCEPT:
A. perishability
B. reduced insurance costs
C. theft
D. damage

Question 6
The MOST significant result of globalization and increased terrorist threats
is:
A. increased transportation costs
B. tighter security requirements and increased restrictions on business
transactions
C. increased supply chain lead-time
D. shorter product life cycles

Question 7
The Sarbanes-Oxley Act (SOX) was passed by US congress in:
A. 2001
B. 2000
C. 2003
D. 2002

Question 8
What is one way to mitigate supply chain risks?
A. Focus primarily on higher than optimal inventory levels
B. Develop a contingency plan based on internal perspectives
C. Prepare a risk mitigation plan once every other year
D. Build redundancy in your supplier base

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Question 9
Which of the following is true of C-TPAT?
A. business participation is required by law
B. participation in the program results in increased security checks
C. it only applies to ocean freight
D. focus on self-regulation

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Section C: Globalization

Question 1
A frequently used Incoterm is CPT which stands for:
A. Cost, Packaging and Transport
B. Carriage Paid To
C. Cost, Packaging and Tariffs
D. Carriage Posted to

Question 2
According to APICS, an independent operator that bring an exporter
together with a ship operator is a:
A. ship broker
B. ship negotiator
C. ship stockbroker
D. ship agent

Question 3
Customs brokers dealing in Canada will use PARS. In the US, the
computer interface is known as:
A. Automated Brokers Interface System
B. American Brokers Interface System
C. Automatic Brokers Intermediary System
D. Automated Brokers Interactive System

Question 4
International commerce is between:
A. exporter-importer
B. governments
C. shippers and receivers
D. local manufacturers and foreign customers

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Question 5
NVOCCs are known to:
A. handle door-to door cargo shipments through inland carriers
B. need to rent containers for shipments, but will ensure full loads for
the round trip
C. buy space on inland carriers and resells it to shippers at marked up
prices
D. perform the physical work (loading , unloading) but will charge a
premium on labor

Question 6
The document that states the value of the commodities in the shipment is
called:
A. ATA Carnet
B. export license
C. commercial invoice
D. export declaration

Question 7
The party that handles the shipment from the port to either the importer's or
exporter's dock is called:
A. export management company
B. NVOCC
C. ship broker
D. export trading company

Question 8
The term used for the firm that arranges transportation for commercial
cargo is:
A. cargo shipper
B. freight forwarder
C. ship brokers
D. customs house brokers

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Question 9
Which is most true about customs regulations?
A. They are fixed and proper researched can avoid potential trouble.
B. They are a moving target, subject to change whenever new threats
arise.
C. They are more strict with exporters.
D. They are more open to negotiations when talking directly to the firm.

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Section D: Logistics

Question 1
A downside of batch order picking is:
A. increased travel time
B. orders can not be completed until all items are picked
C. reduced productivity
D. increased headcount

Question 2
A route that employs ocean and rail from Asia to the North America is
called:
A. landbridge
B. all-water route
C. piggyback service
D. birdyback service

Question 3
A single shipment of products from multiple sources to a specific customer is
which warehouse capability?
A. combination
B. mixing
C. assortment
D. consolidation

Question 4
Adding warehouses will always signify an increase in:
A. transportation cost
B. labor cost
C. cost of lost sales
D. setup and overhead costs

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Question 5
All of the following are challenges to the pipeline mode of transport
EXCEPT:
A. costly construction
B. inflexibility
C. limited use in international carriage
D. weather

Question 6
All of the following are key stakeholders of transportation EXCEPT:
A. shipper
B. carrier of the goods
C. general public
D. competitors

Question 7
All of the following aspects of warehousing will benefit from six sigma
initiatives EXCEPT?

A. loading
B. unloading
C. tracking
D. location

Question 8
An automated storage and retrieval system speed is roughly:
A. 300-400 ft /min vertically & 100 ft /min horizontally
B. 300-400 ft /min horizontally & 100 ft /min vertically
C. 100 ft /min horizontally & 100 ft /min vertically
D. 300-400 ft /min horizontally & 300-400 ft /min vertically

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Question 9
Aside from lack of speed, the other obvious water transportation tradeoff
is:
A. shipment tracking difficulty
B. limited accessibility
C. unloading at ports can delayed by other ships/barges
D. weather vulnerability

Question 10
Basic order picking is characterized by:
A. excess travel time
B. consolidation
C. sorting
D. coordination

Question 11
Determining the number and location of distribution centers occurs during:
A. supply chain master planning
B. strategic network design
C. operational planning
D. operational execution

Question 12
Efficient tracking and handling will best help in achieving which logistics
goal?
A. minimum inventory
B. minimum variances
C. high quality
D. consolidation of movement

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Question 13
How does CTM add value?
A. by aggressively identifying transportation inefficiencies in the order
fulfillment process
B. by facilitating interaction and collaboration between the principal
transportation partners
C. by anticipating demand rather than having to guess where and when
it will surface
D. by matching transportation capacity with demand, which increases
the likelihood of securing backhauls

Question 14
In terms of percentage of US freight, which two modes have roughly the
same percentage?
A. water and motor transport
B. air transport and pipeline
C. water transport and pipeline
D. motor and air transport

Question 15
Items not in transit are placed in:
A. cargo holds
B. storage bins
C. warehouses
D. storeroom

Question 16
One contributor to economies of scale in transportation is:
A. speed
B. weight
C. volume
D. shippers

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Question 17
Productive and cost effective packaging must at least meet which criteria?
A. labeled for ease of tracking
B. can be unloaded and displayed immediately at the retailer end
C. must carry the greatest amount of product at the supplier end
D. will be able to protect the cargo inside with minimal damage to the
packaging

Question 18
Receiving a large volume of product into the warehouse in anticipation of
heavy demand is called:
A. postponement
B. stockpiling
C. cross-docking
D. break bulk

Question 19
Shipment of products from multiple sources that is sorted by customer and
sent on without storing is which warehouse capability?
A. break bulk
B. cross dock
C. assortment
D. mixing

Question 20
Spot stocking in terms of warehouse capability means:
A. inventory is allocated in advance of heavy demand in strategic
markets
B. inventory is stored only in limited amounts to avoid over saturation
C. inventory is shipped as it is produced, but specific limited amounts
are stored as safety stock
D. inventory is transferred and rearranged according to market demand

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Question 21
The biggest reason inventory costs increase with the number of
warehouses is:
A. certain redundancies in warehouse facilities will occur
B. manpower will be doubled to maintain the same amount of stock
C. each warehouse will need its own safety stock and storage space to
carry the safety stock
D. decentralized stocks need more sophisticated tracking systems

Question 22
The break-bulk warehouse capability means:
A. a shipment from one supplier is broken down into smaller shipments
for specific customers
B. a large shipment meant for one customer is broken down into
smaller, more manageable shipment
C. large cargo is broken into component parts for easier storage
D. bulky cargo is repacked for better space utilization in the warehouse
and delivery vehicles

Question 23
The first challenge to creating a DI alliance is distributors may doubt the
benefits. Another key challenge is:
A. not all distributors are worth having a DI alliance with
B. only certain distributors will receive the full benefits
C. there will be some exclusions among distributors in a DI alliance
D. distributors must feel certain that the DI is a long term alliance

Question 24
The general relationship of cargo density to unit cost is:
A. direct
B. the higher the cargo density, the higher the price per weight unit
C. the lower the cargo density, the lower the price per weight unit
D. the higher the cargo density, the lower the price per weight unit

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Question 25
The LTL trucking segment is a designation for trucks that start with loads of
less than:
A. 15,000 lbs
B. 20,000 lbs
C. 25,000 lbs
D. 30,000 lbs

Question 26
The main reason for adding warehouses is:
A. more effective customer service
B. minimization of transportation costs
C. the strategic placement of products
D. maximization of opportunities to reach customers

Question 27
The move towards smaller, more frequent shipments has increased the
importance of:
A. ERP
B. VMI
C. IMS
D. TMS

Question 28
The number of warehouses may affect all of the following EXCEPT:
A. labor
B. packaging
C. quality
D. taxes

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Question 29
The operational level of shipment planning involves:
A. transportation network design
B. optimization of daily transportation plans
C. rough-cut transportation capacity planning
D. budgeting

Question 30
The primary drawback to Exempt carriers is:
A. high overall cost
B. market determines rates
C. not subject to regulation of terms of service
D. limited range of operation

Question 31
The principle economies of distance says:
A. the farther the shipment travels, the more it will cost you
B. longer trips usually include a greater percentage of less-expensive
miles
C. longer distance cause variable cost to move in a upward direction
D. at a certain distance all costs become fixed

Question 32
The US airline industry was highly regulated until:
A. 1975
B. 1976
C. 1977
D. 1978

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Question 33
There are how many major modes of transportation?
A. 6
B. 5
C. 4
D. 3

Question 34
Trucking became the main mode of transport in the US after:
A. World War I
B. Korean War
C. World War II
D. Vietnam War

Question 35
Warehouse operations characterized by large number of SKU's per order and
overall large order volume can benefit from:
A. basic order picking
B. zone picking
C. batch picking
D. wave picking

Question 36
What is one key step to selecting warehouse locations?
A. Calculate the optimal distance to customers
B. Contract an experienced real estate broker
C. Evaluate the weather patterns in potential locations
D. Evaluate availability of transportation providers

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Question 37
What is the current market size of domestic water transport in the U.S.?
A. 15-17% of total ton miles
B. 10-12% of total ton miles
C. 8-10% of total ton miles
D. 3-5% of total ton miles

Question 38
What logistic strategy facilitates the ability to quickly react to market
demand?
A. minimum inventory
B. rapid response
C. high quality
D. life cycle support

Question 39
When adding warehouses, transportation is impacted in which way?
A. costs increase as distances between warehouses increase
B. costs decrease as distances between market and warehouse
shorten
C. efficiency of service will increase with the addition of warehouses
D. number of vehicles increase to service more warehouses

Question 40
Which activity does not typically take place in a warehouse?
A. receiving
B. order picking
C. selling
D. packaging

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Question 41
Which is most true about rail transport?
A. It is an efficient way to transport product between countries in the
European
B. It is the second highest transport mode in terms of tons per year in
the US.
C. It is the slowest but the most reliable mode of transport.
D. There has been a steady decline in total amount transported.

Question 42
Which is not a motor carrier trade-off?
A. high variable costs
B. hazardous for less durable goods
C. rising labor rates
D. long hours for operators

Question 43
Which is not true about current US market conditions for rail transport?
A. few rail carriers
B. high occurrence of product theft
C. high fixed costs
D. little room for expansion

Question 44
Which of the following combines the benefits of public and private
warehousing facilities?
A. bond warehouses
B. hybrid warehouses
C. contract warehouses
D. cross warehouses

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Question 45
Which of the following would be the least frequent example for the use of
vehicles for temporary storage?
A. trailers and railcars parked without being unloaded
B. a loaded vehicle taking a roundabout route to its destination
C. stocks on cargo ships
D. changed destination

Question 46
Which type of carrier is subjected to the greatest amount of government
regulation?
A. private
B. common
C. contract
D. exempt

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Section E: Managing the Supply Chain

Question 1
Supply Chain Management Cost (SCMC) can be defined as:
A. all direct costs and indirect expenses associated with operating
SCOR business processes at key elements of the supply chain
B. all direct costs and indirect expenses associated with operating
SCOR business processes within the organization
C. all direct costs and indirect expenses associated with operating
SCOR business processes and practices within the supply chain
D. all direct costs and indirect expenses associated with operating
SCOR business processes across the supply chain

Question 2
The cash-to-cash cycle time equation is:
A. Inventory Days of Supply - Days of Payables Outstanding + Days of
Sales Outstanding
B. Inventory Days of Supply - Days of Sales Outstanding + Days of
Payables Outstanding
C. Inventory Days of Supply + Days of Payables Outstanding - Days of
Sales Outstanding
D. Inventory Days of Supply + Days of Sales Outstanding + Days of
Payables Outstanding

Question 3
What of the following is NOT a common tradeoff encountered within
supply chain networks?
A. lot size versus inventory
B. lead time versus transportation costs
C. product variety versus inventory
D. forecast error versus inventory

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Question 4
A supply issue that results in missed customer orders or unfilled orders
creates:
A. excess inventory
B. decreased inventory
C. backorders
D. increase supply variability

Question 5
Which of the following is a metric measure overall customer satisfaction?
A. lost sales
B. backorder value
C. repeat purchases
D. perfect order fulfillment

Question 6
SCOR Level 1, Level 2 and Level 3 metrics are considered?
A. strategic metrics
B. operational metrics
C. financial metrics
D. customer service metrics

Question 7
The total number of perfect orders divided by the total number of orders is:
A. the line fill rate
B. the quantity fill rate
C. the perfect order fulfillment metric
D. the backorder value

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Question 8
The supply chains ability to react to changes in market demand is:
A. supply chain responsiveness
B. supply chain adaptability
C. supply chain reactiveness
D. supply chain agility

Question 9
Supply Chain Management Cost includes:
A. transportation and manufacturing expenses
B. transportation, importation and warehousing expenses
C. supply chain planning labor expenses
D. indirect and direct expenses associated with operating the end-to-
end supply

Question 10
All other things being equal, which of the following would negatively
impact the cash-to-cash cycle metric:
A. increased accounts payable
B. decreased accounts receivable
C. increased inventory
D. decreased inventory

Question 11
All other things being equal, which of the following would negatively
impact the cash-to-cash cycle metric:
A. decreased manufacturing lead-time
B. increased accounts payable
C. reduced accounts payable
D. increased accounts receivable

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Question 12
A mature product that has stable demand and minimal new product
introductions is best sourced with:
A. an efficient supply chain
B. a responsive supply chain
C. a reactive supply chain
D. an adaptive supply chain

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Section F: Technology

Question 1
A collaborative database designed specifically to support the creation and
tracking of non-structured information is a:
A. relational database
B. GroupWise database
C. object-oriented database
D. data warehouse

Question 2
A complex environment requiring trade-off considerations is MOST likely to
benefit from:
A. WMS
B. APS
C. IMS
D. TMS

Question 3
A decrease in an employee's productivity is MOST likely to be discovered
by:
A. TMS
B. LMS
C. WMS
D. IMS

Question 4
A developer interested in simplifying their program, reducing development
time and easing integration efforts MOST likely would utilize:
A. XML
B. object oriented programming
C. web services
D. relational databases

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Question 5
A firm's structured data repository is part of what IT infrastructure level?
A. operating system
B. database
C. application
D. presentation

Question 6
A genetic algorithm is MOST likely utilized:
A. in relational database queries
B. in complex search problems
C. in large linear optimization problems
D. simulation models

Question 7
A key advantage of a passive RFID tag over an active RFID tag is:
A. transmission distance
B. transmission bandwidth
C. size
D. cost

Question 8
A model used to show the relationship between inputs and outputs is a:
A. conceptual model
B. mathematical model
C. simulation model
D. decision support system

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Question 9
A network protocol for transmitting files across a TCP/IP network is:
A. TCP/IP
B. FTP
C. PERL
D. SQL

Question 10
A private network using public telecommunication systems that securely
shares business information with suppliers is:
A. extranet
B. intranet
C. internet
D. portal

Question 11
A reduction in emails, phone calls and meetings following a successful IT
project MOST likely would be considered:
A. a tangible benefit
B. an unforeseen benefit
C. an intangible benefit
D. a side benefit

Question 12
A rules based system design to mimic a human expert is:
A. an intelligent agent
B. an expert system
C. a genetic algorithm
D. a neural network

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Question 13
A sell-side e-commerce web site is MOST likely to contain:
A. supplier web portals
B. indirect procurement applications
C. direct procurement applications
D. personalized offers based on a specific customer's order history

Question 14
A significant difference between Auto ID and RFID is:
A. RFID is internet based
B. RFID creates smart tags
C. Auto ID uses open standards of communication
D. Auto ID works on the VHF signal range

Question 15
A simulation model is an:
A. exploratory system
B. exploitative system
C. optimization system
D. transactional system

Question 16
A solution to product variety vs. inventory conflict is:
A. delayed differentiation
B. limiting product options
C. increasing storage space
D. reducing customization

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Question 17
A standard of EDI transmission that enables real-time data transfer
between companies is:
A. XML
B. AS2
C. SQL
D. FTP

Question 18
A successful ERP implementation should result in all of the following
EXCEPT:
A. reduced inventory for a given customer service level
B. increase visibility
C. reduced cash-to-cash cycle
D. increased manufacturing capacity

Question 19
A supplier is MOST likely to view proprietary POS data through a:
A. consumer portal
B. business portal
C. distributed portal
D. web portal

Question 20
A supply chain model that solves an objective function without violating
defined constraints is MOST likely:
A. a simulation model
B. a tactical model
C. a conceptual model
D. an optimization model

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Question 21
A system that minimizes the duplicate storage of data by linking common
characteristics in datasets is:
A. object-oriented database
B. relational database
C. data warehouse
D. data mart

Question 22
A thermostat is a very simple example of:
A. an intelligent agent
B. fuzzy logic
C. an expert system
D. a genetic algorithm

Question 23
A TMS with an objective function of minimizing transportation costs in a
retail network can increase the risk of:
A. less than full truckloads
B. markdowns at the retail store
C. shipment delays
D. poor customer service

Question 24
A UPC bar code typically does not contain:
A. SKU number
B. manufacturer
C. product identification
D. a serial number

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Question 25
A web-enhanced customer service approach should:
A. provide a variety of solutions to improve the customers ordering
experience
B. have on hand information not readily available on the product
packaging
C. offer quick responses to complex customer issues
D. be a viable alternative for customers who prefer non personal
channels

Question 26
Advance planning and scheduling (APS), also referred to as advance
planning and optimization (APO), utilize:
A. random number generators to calculate probabilities of potential
outcomes
B. mathematical algorithms to make decisions
C. conceptual models to allow managers to draw high level conclusions
D. simulation algorithms

Question 27
Advancements in ERP shifts the firm's focus from internal optimization to:
A. external optimization
B. external relationship management
C. process improvements
D. data visibility

Question 28
All of the following are advantages of AIDC EXCEPT:
A. reduced lead-time on information
B. reduced implementation cost
C. reduced data capture errors
D. increased employee productivity

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Question 29
All of the following are automatic communication technologies used in
warehouse operations EXCEPT:
A. wireless radio data terminal
B. pick-to-light
C. heads-up-displays
D. email

Question 30
All of the following are benefits of e-business EXCEPT:
A. greater information visibility
B. automation
C. centralized inventory of low volume products
D. reduced warehouse operations

Question 31
All of the following are benefits to buyers of B2B market places EXCEPT:
A. standard product specifications
B. reduced unit costs
C. increased speed to market
D. reduced supplier risk

Question 32
All of the following are challenges with implementing a WMS EXCEPT:
A. upfront cost
B. configuration and setup data
C. reduced safety stock levels
D. increase movement restrictions

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Question 33
All of the following are common information technology tools used to
resolve inventory versus transportation costs conflicts EXCEPT:
A. distribution control systems
B. mix loading systems
C. delivery optimization systems
D. business intelligence systems

Question 34
All of the following are considered basic levels of IT infrastructure
EXCEPT:
A. internet
B. operating System (O/S) and computer network
C. application
D. presentation

Question 35
All of the following are considered tangible costs associated with an IT
project EXCEPT:
A. customer retention
B. software license
C. maintenance fees
D. consulting fees

Question 36
All of the following are examples of automatic identification and data
capture devices EXCEPT:
A. EDI
B. RFID
C. bar code scanners
D. vision systems

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Question 37
All of the following are examples of static supply chain data EXCEPT:
A. forecast
B. material numbers
C. supply chain locations
D. transportation network

Question 38
All of the following are included in the application level of IT infrastructure
EXCEPT:
A. SAP
B. MS Office
C. Oracle
D. GUI

Question 39
All of the following are key aspects of an effective TMS system EXCEPT:
A. visibility
B. workforce deployment
C. centralized planning
D. transportation planning, order management and fulfillment
integration

Question 40
All of the following are key steps in a technology audit EXCEPT:
A. assess current IT systems and compare capabilities to business
objectives
B. Sarbanes-Oxley Act compliance
C. project prioritization
D. gaps analysis and recommendations

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Question 41
All of the following are operational IT tools focused on planning EXCEPT:
A. demand planning module of ERP system
B. master planning module of ERP system
C. inventory planning system
D. transportation planning system

Question 42
All of the following are part of the e-business foundation layer EXCEPT:
A. portals
B. fiber optics
C. servers
D. middleware

Question 43
All of the following are potential issues with RFID EXCEPT:
A. data visibility
B. interference
C. ROI
D. reader collision

Question 44
All of the following enable near real-time tracking and planning of
shipments EXCEPT:
A. web-based TMS
B. AIDC
C. IMS
D. RFID

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Question 45
Although not required, data encryption is MOST likely to be a key feature of
the following network:
A. LAN
B. VPN
C. WAN
D. value-added network

Question 46
An autonomous software program that performs tasks for users is an
example of:
A. an intelligent agent
B. a neural network
C. a genetic algorithm
D. an expert system

Question 47
An example of an operational IT tool focused on execution would be:
A. transportation management system
B. warehouse management system
C. inventory management system
D. transactional accounting system

Question 48
An example of B2C is:
A. online banking
B. private exchange
C. consortium exchange
D. vertical trade exchange

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Question 49
An extranet protocol used to transmit electronic documents between two
computer systems with different native formats is:
A. XML
B. TCP/IP
C. FTP
D. EDI

Question 50
An integrated ERP system is MOST likely to prevent APS from creating
what type of plan?
A. suboptimal
B. optimal
C. constrained
D. feasible

Question 51
An RFID tag that uses energy from the interrogator's RF signal to transmit
information is:
A. a passive tag
B. a semi passive tag
C. an active tag
D. a semi-active tag

Question 52
As the user base grows and supply chain information sharing extends
beyond the internal network, all of the following increase in importance
EXCEPT:
A. complexity reduction
B. role-specific data access
C. data access to real-time information
D. remote access

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Question 53
B2B is:
A. business-to-consumer e-commerce
B. business-to-business e-commerce
C. sell-side e-commerce
D. buy-side e-commerce

Question 54
Batch processing of data is typically appropriate for all of the following
systems EXCEPT:
A. DSS tools
B. business intelligence tools
C. warehouse management systems
D. ERP planning module

Question 55
Business Intelligence tools MOST likely extract data from which of the
following systems to compile data and identify emerging trends?
A. data marts
B. data warehouse
C. object-oriented database
D. flat files

Question 56
Business process simplification is often a key benefit of implementing:
A. data-oriented middleware
B. customized solutions
C. XML
D. process-oriented middleware

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Question 57
Business-to-consumer internet marketing began with the introduction of:
A. XML
B. JAVA
C HTML
D. broadband

Question 58
Cellular enabled GPS is typically required for:
A. warehouse inventory tracking
B. transportation optimization
C. IMS
D. global track and trace

Question 59
Compared to portal EDI transactions, web-based EDI transactions are:
A. more expensive
B. more secure
C. less expensive
D. slower

Question 60
Conceptual models are best at:
A. scheduling operations
B. improving understanding
C. suggesting solutions
D. modeling variability

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Question 61
Dashboards are often the presentation layer of:
A. ERP systems
B. decision support systems
C. relational databases
D. simulation systems

Question 62
Data mining attempts to:
A. organize enterprise data
B. transmit enterprise data
C. identify data patterns or trends
D. suggest answers to business issues

Question 63
Data warehousing and mining applications are forms of:
A. analytical applications
B. web-based applications
C. information management tools
D. diagnostic applications

Question 64
Dynamic transportation data such as road conditions, weather and fuel
costs necessitates:
A. track and trace
B. web-based TMS
C. WMS
D. IMS

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Question 65
EDI and web services MOST likely are utilized in:
A. stage 1 technical communications
B. stage 3 technical communications
C. stage 4 technical communications
D. stage 2 technical communications

Question 66
Effectively implemented LMS MOST likely will identify:
A. inventory reduction opportunities
B. customer improvement opportunities
C. excess manufacturing capacity
D. workforce redundancies

Question 67
Electronic data interchange and electronic funds transfer are examples of:
A. EDI
B. EFT
C. EDT
D. FTP

Question 68
Financial transactions are handled by:
A. EFT
B. EDI
C. EDT
D. TCP/IP

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Question 69
For manufacturing companies, which of the following ERP modules
typically supplies the primary input to the planning module?
A. customer relationship management
B. scheduling
C. capacity planning
D. demand planning

Question 70
Global track and trace enables:
A. tracking of shipments from booking to proof of delivery
B. tracking of material within a warehouse
C. weekly in-transit inventory reports
D. customer service reporting

Question 71
Human involvement in data acquisitions and transactions does all of the
following EXCEPT:
A. adds processing time
B. increases errors
C. increases efficiencies
D. increases cost

Question 72
In order for e-businesses to ultimately succeed, it is important that:
A. optimization occurs across all channels servicing customers
B. real-time data exist throughout the supply chain
C. the firm is vertically integrated
D. strong supplier relationships exist

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Question 73
Independent organizations that cooperate based on mutual values and act as
a single entity is called a:
A. lateral organization
B. integrated supply chain
C. lean supply chain
D. virtual organization

Question 74
Integration time can be reduced by:
A. customization
B. business process mapping
C. configuration
D. best-in-breed ERP

Question 75
Inventory management systems (IMS) do all of the following EXCEPT:
A. monitor inventory
B. manage inventory
C. schedule packaging operations
D. determine optimal inventory levels for each material at each location
in the supply chain

Question 76
Linear optimization is an example of a:
A. conceptual model
B. simulation model
C. decision support system
D. mathematical model

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Question 77
Middleware requiring significant customization to link two applications is
most likely:
A. data-oriented middleware
B. process-oriented middleware
C. XML based
D. JAVA based

Question 78
Multidimensional business intelligence reports MOST likely retrieve data
from:
A. flat files
B. OLAP cubes
C. relational database tables
D. spreadsheets

Question 79
Open order status is part of which of the following ERP modules:
A. procurement
B. customer management
C. logistics
D. manufacturing

Question 80
Order fulfillment SCM systems:
A. provide direct picking functionality
B. provide data visibility enabling accurate delivery commitments
C. provide VMI functionality
D. provide optimal safety stock level setting

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Question 81
Preventive maintenance is a part of which of the following ERP modules:
A. asset
B. manufacturing
C. procurement
D. logistics

Question 82
Purely technical problems and underpowered systems are common
technological limitations and challenges to implementing CRM and SRM.
Another example of a challenge to implementing CRM and SRM is:
A. poorly trained employees who are not yet able to grasp the
technology
B. regular retraining of employees is costly and will take up valuable
time
C. getting the appropriate employees access to the most beneficial
information
D. constant upgrading of systems is necessary to keep up software
advances

Question 83
Retail store closing decisions are assisted by:
A. assortment planning systems
B. merchandise planning systems
C. strategic planning systems
D. location planning systems

Question 84
Robust data analysis of accurate and complete supply chain data should
result in:
A. complexity reduction
B. increased product life cycle
C. reduced inventory
D. improved allocation of company resources

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Question 85
Significant ERP customization will likely increase the cost of:
A. hardware
B. training
C. upgrades
D. configuration

Question 86
Software programs designed to make judgment calls based on reasoning are
MOST likely to utilize:
A. fuzzy logic
B. intelligent agents
C. neural networks
D. genetic algorithms

Question 87
Strategic models are primarily bound by:
A. capacity constraints
B. long-range forecasts
C. financial limitations
D. network design

Question 88
Supplier selection is included in which of the following ERP modules:
A. procurement
B. manufacturing
C. customer management
D. product data

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Question 89
Supply chain information should be collected:
A. manually
B. automatically
C. every time material is handled or services are rendered
D. and transmitted using batch processing

Question 90
Supply chain visibility systems enable companies to implement:
A. EDI
B. WMS
C. VMI
D. ERP

Question 91
The advent of web-based technologies has given cross channel teams:
A. access to multiple sources of data
B. the chance to compare with competitor performance
C. the option to collaborate without any unnecessary physical
interaction
D. the ability to interweave common and specialized knowledge

Question 92
The code used on radio frequency identification (RFID) is:
A. Universal Product Code
B. Electronic Product Code
C. Electronic Item Code
D. Product Data Code

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Question 93
The customer name field in a database table is an example of a:
A. database table
B. data element
C. database object
D. schema element

Question 94
The ERP module focused on supply and demand as well as material
tracking is:
A. customer management
B. finance
C. assets
D. manufacturing

Question 95
The expense associated with global RFID implementation necessitates:
A. low margin products
B. mature IT infrastructure
C. global roll-out
D. successful pilot projects

Question 96
The general ledger and journal entries are associated with which ERP
module:
A. assets
B. product data
C. finance
D. human resources

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Question 97
The graphical user interface (GUI) and communication technologies are
considered part of the:
A. presentation level of IT infrastructure
B. application level of IT infrastructure
C. database level of IT infrastructure
D. operating system level of IT infrastructure

Question 98
The key benefit of many supply chain management software tools is:
A. reducing costs
B. streamlining processes in the supply chain
C. providing more information for supply chain managers
D. getting more from existing technology investments

Question 99
The LEAST likely reason for cost overruns on an IT project is:
A. unbudgeted costs
B. planning for perfection
C. license costs
D. underestimated costs to increase the attractiveness of the project

Question 100
The LEAST significant component of a warehouse management system
is:
A. directed picking
B. directed replenishment
C. directed put-away
D. direct scheduling

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Question 101
The LEAST significant constraint included in a tactical model is:
A. manufacturing capacity
B. labor
C. transportation
D. demand

Question 102
The LEAST significant source of data errors is:
A. manual data manipulation
B. bar coders
C. legacy system integration
D. non-standard material numbers

Question 103
The logistics and procurement ERP module is LEAST likely to include:
A. inventory management modules
B. demand forecast modules
C. warehouse management modules
D. transportation management modules

Question 104
The MOST appropriate type of model for complex systems involving
variability is a:
A. optimization model
B. transactional model
C. heuristics model
D. simulation model

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Question 105
The MOST significant advantage of an AIDC device over a serial number on
an item is:
A. quality of information
B. cost
C. SKU number
D. identification of location

Question 106
The MOST significant benefit of e-business is:
A. reduced costs
B. supply chain network simplification
C. collaboration
D. increased margins

Question 107
The MOST significant challenge with simulation modeling is:
A. hardware performance
B. software performance
C. synchronizing the model with the changing environment
D. user training

Question 108
The MOST significant consideration associated with wireless transmission
is:
A. data security
B. bandwidth
C. location
D. replication

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Question 109
The MOST significant initial step in accessing a new IT project is:
A. assessing hardware requirements
B. gaining senior management support
C. reviewing user feedback
D. performing a cost benefit analysis

Question 110
The MOST significant reason to select a best-of-breed ERP module that is
from a vendor different than your standard ERP implementation is:
A. niche market application
B. IT diversity
C. pilot project
D. cost

Question 111
The optimal balance between cost of stock outs and risk of markdowns is
determined by which retail SCM system?
A. assortment planning
B. location planning
C. strategic planning
D. merchandise planning

Question 112
The primary benefit of capturing data at the source is:
A. productivity improvements
B. reduced shrinkage
C. reduced inventory
D. reduced errors

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Question 113
The private network within an organization is the:
A. intranet
B. extranet
C. internet
D. VPN

Question 114
The software design goal best described as minimizing system component
dependencies is:
A. normalization
B. decoupling
C. loose coupling
D. standardization

Question 115
The successful implementation of which of the following supply chain
systems is MOST significant for an online retail to compete with a
traditional retailer?
A. VMI
B. SCEM
C. TMS
D. LMS

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Question 116
The theory of constraints as applied to strategic decisions regarding
technology says:
A. There is no point in buying expensive hardware and software to
speed up the flow of information, materials or payments if they will not
add net value to the chain.
B. There is no point in buying expensive hardware and software to
speed up the flow of information, materials or payments if they will just
be sent speeding into a bottleneck (or constraint) that will stop their
progress.
C. There is no point in buying expensive hardware and software to
speed up the flow of information, materials or payments if they will just
be replaced by constant upgrades.
D. There is no point in buying expensive hardware and software to
speed up the flow of information, materials or payments if they will just
be handled by under trained professionals.

Question 117
The type of computer network MOST likely to be used by customers and
suppliers to view secured supply chain information is:
A. LAN
B. VPN
C. WAN
D. wireless LAN

Question 118
Version control and upgrades are easiest with:
A. fat clients
B. thin clients
C. mobile devices
D. servers

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Question 119
Warehouse management is part of which of the following ERP modules:
A. manufacturing
B. logistics
C. assets
D. customer management

Question 120
WBEM is often referred to as:
A. the extranet component of ERP
B. customer portal
C. supplier portal
D. the intranet component of ERP

Question 121
What B2B exchange is the typically most costly?
A. PTX
B. CTX
C. UTX
D. ITX

Question 122
What inventory management procedure should warehouse management
systems utilize?
A. cycle counting
B. physical inventory
C. continuous cycle counting
D. sample counting

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Question 123
What is the LEAST significant concern of large organizations with multiple
ERP system implementations?
A. maximizing economies of scale
B. hardware
C. company wide standard KPI's
D. data maintenance

Question 124
What percentage of your required functionality should you expect in an
industry leading ERP system off-the-shelf product:
A. 0.5
B. 0.7
C. 0.8
D. 0.9

Question 125
What portal type is designed to leverage procurement economies of scale
within an industry?
A. vertical
B. web
C. horizontal
D. lateral

Question 126
What supply chain system is MOST likely to create an end-to-end
schedule for the supply chain?
A. WMS
B. TMS
C. ERP
D. APS

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Question 127
What type of B2B marketplace is MOST appropriate for a group of small
business looking to leverage buying power?
A. CTX
B. ITX
C. PTX
D. UTX

Question 128
When data is captured, it is important to record all available data because:
A. data errors tend to decrease as more data is captured
B. the incremental effort in capturing additional data is negligible
C. the cost of storing additional data is negligible
D. it is difficult to predict what data may be valuable in the future

Question 129
When resolving lot sizing versus inventory conflicts, information
technology can best help by
A. allowing manufacturers to receive demand data in real time to help
them better plan the production schedule
B. allowing retailers and distributors to track the status of inventory
throughout the process, so they can better predict replenishments
which enables them to better communicate and manage customer
expectations
C. giving the opportunity for retailers to reduce or increase stocks
depending on the current capacity of the manufacturer
D. increasing the amount of data shared so that fixed lot sizes at the
manufacturer can be adjusted to the current inventory level needs at the
retailer

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Question 130
Which is not a specific critical area of an organizations business systems?
A. information
B. transaction maintenance
C. financial details
D. current hardware and software

Question 131
Which of the following computer languages was designed to focused on
communicating metadata?
A. SQL
B. XML
C. HTML
D. JAVA

Question 132
Which of the following costs is MOST likely to increase following an e-
business launch:
A. cost per transaction
B. outbound transportation costs
C. inbound transportation costs
D. manufacturing utility costs

Question 133
Which of the following is LEAST likely to be considered a strategic IT tool?
A. Decision Support Systems (DSS)
B. Warehouse management system (WMS)
C. Advance Planning and Scheduling software (APS)
D. Supply Chain Management software (SCM)

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Question 134
Which of the following is LEAST likely to improve data accuracy?
A. increase headcount
B. real-time data transmission
C. event data capture
D. automation

Question 135
Which of the following is primarily focused on integrating all nodes and
functions of the supply chain?
A. database
B. data structure
C. data acquisition
D. data mart

Question 136
Which of the following is the LEAST significant input to an IMS to
determine optimal inventory levels?
A. material substitutions
B. carrying cost
C. stock out cost
D. service level requirement

Question 137
Which of the following is the LEAST significant potential risk to supply
chain technology implementations:
A. mega project mindset
B. unclear business requirements
C. version control
D. misrepresented IT product capabilities

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Question 138
Which of the following situations is LEAST likely to warrant APS:
A. dedicated capacity
B. constrained manufacturing capacity
C. volatile demand requiring frequent schedule changes
D. shared production lines

Question 139
Which of the following systems uses reinforcement learning to strengthen and
weaken its algorithms based on results?
A. intelligent agents
B. neural network
C. genetic algorithms
D. fuzzy logic

Question 140
Which SCM system measures and manages workforce deployment,
demand and capacity?
A. TMS
B. LMS
C. WMS
D. ERP

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Section G: Influencing and Prioritizing Demand

Question 1
"Over-the-wall" design is best described as:
A. A method of design that does not employ collaboration and cross-
functional iteration
B. A cutting edge innovative design
C. A design process that goes beyond the traditional walls of the firm
and works with external partners
D. A method of design employed only by vertically integrated
companies

Question 2
A customer will deem a contact channel strategy as direct if:
A. they can reach someone who can assume ownership for the issue
B. they can get their product through the least complicated route
C. they can see that their queries are immediately taken note off
D. they can speak to the least number of people when they have
questions

Question 3
All of the following are benefits of design collaboration EXCEPT:
A. fewer cost overruns
B. innovation
C. higher customer satisfaction
D. speed of development

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Question 4
All of the following terms speak to degrees of supplier integration
EXCEPT:
A. informal collaboration
B. formal collaboration
C. out of the box thinking
D. supplier design

Question 5
An example of higher customer service and reduced shipping costs
provided by advanced supply chain techniques is:
A. door to door delivery
B. mass customization
C. online ordering
D. transshipping

Question 6
Component commonality lowers cost by:
A. less variety allows economies of scale
B. high quality components are used
C. engineers are forced to use less expensive solutions
D. higher availability of components

Question 7
Creating a product that can be economically packaged, stored and
transported is a goal of:
A. Design for Ergonomics
B. Design for Planning
C. Design for Control
D. Design for Logistics

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Question 8
Involving suppliers at earlier stages in the design process may have the all of
the following benefits EXCEPT:
A. decline in purchased material costs
B. increase in purchased material quality
C. decline in development time
D. simplification of highly complex final products

Question 9
Profitability is best delivered by an effective contact channel strategy by:
A. utilization of lowest cost placement options
B. applying automation whenever possible
C. employment of highly trained personnel whenever possible
D. use of latest technology

Question 10
Quality initiatives always:
A. include the management
B. include an analysis phase
C. include immediate listing of problems
D. include immediate listing of solutions

Question 11
The aspect of an effective contact channel strategy that refers to how easy a
customer is able to find the answers to questions / problems that they
may have is:
A. expedient
B. convenient
C. fast
D. accessible

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Question 12
The definition of quality is:
A. in the mind of the customer
B. in the mind of the designer
C. in the mind of the manufacturer
D. in the mind of the tester

Question 13
The key to mass customization efficiency is:
A. instantaneous communication between the nodes that build and
supply each module
B. multiple product options availability
C. knowledgeable customers
D. easy product reconfiguration

Question 14
The premise for concurrent engineering is the product design:
A. suffers when engineers are only involved at the beginning
B. improves when stakeholders other than the engineers contribute
C. requires engineers to be part of every design stage
D. suffers when more non-technical people are involved

Question 15
What is the second step in the design process in a supply chain?
A. engineering team incorporates customer need into the design of the
product
B. logistics team develops the potential warehousing and
transportation product
C. design team considers the issues that may arise along the supply
chain
D. purchasing team sources the materials necessary for production

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Question 16
Which most true about the effect of complexity in a product?
A. The higher the complexity of the product, the higher the need to
maintain in house production thus less need for strategic alliance.
B. The more complex the relationship between the component and the
final product, the more value there will be in collaborative design.
C. The more complex the relationship between the components, the
higher chance for failure, thus a greater need for a stronger supplier
relationship to react to problems immediately.
D. The less the complex the product, the easier it is to develop
alliances since the trust issue about proprietary knowledge is not a
significant factor.

Question 17
Which of the following statements is most true about the implications of
placement decisions to CRM?
A. After determining the different customer segments, not only do the
contact strategy channels have to be customized to suit each
segment, but the products also have to contain the necessary
variations to adapt to each segment.
B. The contact strategy channel will depend on the potential business
value of the customer.
C. Identical products can be distributed through different channels that
match communication and contact preferences of different customer
groups.
D. One-way channels may have worked before, but interactive
channels are now the only option when it comes to customers with
specific requirements.

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Question 18
While a contact channel strategy increases profitability by securing lifetime
customers, it primarily increases profitability by:
A. making certain that customer satisfaction is the primary focus
B. developing the most interactive form of communication between
customer and the business
C. using the latest technology to achieve better customer interface
D. ensuring the most cost effective and customer preferred channel is
used to distribute products and services

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Section H: Customer Relationship Management (CRM)

Question 1
A customer data warehouse will benefit sales productivity by:
A. delivering data on which product is most popular in each customer
segment
B. ensuring budgeted resources are allocated towards promotions
previously recorded as successful
C. ensuring that human and technology resources are allocated
according to customers channel preferences
D. gathering information on customers buying behaviors

Question 2
A key to implementing CRM technology is first determining the current
stage of technology integration. The stage where one main system
captures and stores all the different date elements is known as:
A. internally integrated technology
B. multi-enterprise integrated technology
C. interfacing technology
D. disconnected technology

Question 3
A specific task that CRM strategies must accomplished to retain the most
profitable customers is:
A. define what product features or services mean the most to the best
customers
B. focus on customers that have been converted from the competition
C. offer better discounts to the customers with potential to increase in
value over time
D. maintain balance between improved customer service and
profitability of each segment

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Question 4
All of the following are essential loyalty program design considerations,
EXCEPT:
A. positioning
B. targeting
C. cost and benefit structure
D. length of program

Question 5
All of the following are ways lifetime customer relationships enhance profit
EXCEPT
A. lower total marketing costs
B. progressively easier to satisfy lifetime customers
C. increased revenue and profit opportunities
D. reduce the number of customers

Question 6
CRM strategies to retain the most profitable customers must do all of the
following, EXCEPT:
A. deliver timely and detailed information
B. define the product features most important to this segment
C. measure impact
D. establish price minimums

Question 7
CRM technologies have managed to let businesses:
A. get faster feedback from customers
B. gather customer information about buying habits
C. collate data about customer preferences
D. meet customer delivery deadlines

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Question 8
Customer segments are defined by:
A. age
B. buying capability
C. actual buying behaviors
D. socio economic class

Question 9
Each of the following is a key component of enterprise marketing
automation, EXCEPT:
A. promotions
B. customer retention
C. response management
D. order processing

Question 10
How is CRM best integrated in the development stage of the product life
cycle?
A. The feedback gathered through CRM can be used to rectify any
serious flaws even before product launch.
B. The information gathered through CRM can be used to identify an
idea that has potential.
C. The response of customers to prototypes released through CRM
activities will be used to modify the final product.
D. The reaction of customers to CRM promotional activities will dictate
which direction the product development should take.

Question 11
Increased revenues and profits from lifetime customers are realized
mainly as a result of:
A. minimal customers being lost to competition
B. increased customer satisfaction
C. customers reluctance to switch as the relationship grows
D. increasing pricing power when negotiating with long term customers

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Question 12
One approach to measuring customer satisfaction levels is:
A. logging customer complaints
B. monthly customer feedback questionnaires
C. tracking reasons for product returns
D. identifying revenue trends

Question 13
Sales force automation (SFA) tools include all of the following EXCEPT:
A. contract management
B. quotations management
C. account management
D. forecasting

Question 14
The CRM technology tool that analyzes customer sales information to
uncover patterns is:
A. account management
B. business intelligence
C. marketing automation
D. sales force automation

Question 15
The following are ways to reduce risk when outsourcing CRM, EXCEPT:
A. establish performance expectations
B. maintain an exit strategy
C. maintain ultimate responsibility for CRM
D. select provider that offers lowest price

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Question 16
The main objective of CRM technology is to:
A. support a customer focused approach by making information more
strategically useful
B. determine the customers needs and delivers the products and
services at the appropriate time
C. create a single, operations focused integrated database
D. collect and analyze customer data

Question 17
The reason lifetime customers are easier to satisfy is best explained by
which of the following statements?
A. It becomes easier to retain customers through deeper knowledge of
customers needs and buying habits.
B. It becomes second nature for a business to anticipate the needs of a
customer.
C. It is faster and easier to communicate with long term customers.
D. Customers tend to be more frank with feedback as the relationship
progresses, so more needs are met.

Question 18
There are no sales at what stage in the product life cycle?
A. introduction
B. development
C. maturity
D. decline

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Question 19
What is the difference between promotional activities in a CRM business
model and promotional activities in traditional promotions?
A. the level of research, segmentation and customization of the
promotional message that is possible
B. the increased budget to accomplish tasks that study buyer
motivation and behaviors
C. the number of personnel assigned to programs that develop distinct
CRM
D. the approach towards measuring and achieving customer
satisfaction

Question 20
What role has technology played in CRM?
A. It has made it easier for business to gather information on customer
buying habits
B. It has spawned new software companies
C. It has changed the roles of participants
D. It has reduced the complexity of the supply chain

Question 21
Which is most true about early sales force automation technologies in
CRM?
A. Data could be communicated back to the business systems;
however, performance was very slow.
B. It was initially designed to collect and analyze customer information
from the sales representatives.
C. It could assist in the development of quotations for simple orders
requiring product configuration and pricing.
D. It was time consuming because of the necessity to download the
data.

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Question 22
Which is not a typical CRM activity related to prospective customers?
A. market research
B. audience segmentation
C. focus group testing
D. correct contact channel identification

Question 23
Which is the least effective way to measure customer satisfaction?
A. participation in performance reviews
B. the frequency and total amount of customer complaints
C. transaction customer feedback questionnaires
D. periodic customer feedback questionnaires

Question 24
Which of the following is a SFA tool that is associated with assisting in
converting leads into sales?
A. pipeline management
B. knowledge management
C. contact management
D. account management

Question 25
Which of the following is part of the major components of an EMA
marketing campaign?
A. account management
B. advertising management
C. sales management
D. response management

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Section I: Supplier Relationship Management (SRM)

Question 1
A close strategic alliance with a supplier is the best option when:
A. the supplier is known to have proprietary knowledge or processes
that could be available to competitors if not acquired
B. the suppliers are known to offer the lowest true cost to a purchased
component
C. the organization is looking to cross-train its own workers with
expertise that lies outside its core competencies
D. the organization cannot develop the in-house manufacturing
capability to produce a component that is critical to competitive
differentiation

Question 2
A major obstacle to SRM software adoption is:
A. available trained personnel
B. setting realistic expectations
C. current technology aptitude of suppliers
D. ability of suppliers to upgrade current technology

Question 3
A purchasing manager has all of the following roles EXCEPT:
A. supplier selection
B. negotiation
C. value analysis
D. supplier execution

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Question 4
A strategic alliance with a supplier maybe necessary:
A. when there might be only one supplier available and a relationship is
needed to ensure supply
B. when there are multiple suppliers available and partnership will
ensure lower rates
C. when there are multiple suppliers but only limited well-established
suppliers
D. when there are currently no available suppliers, but an existing
supplier has the potential to adapt its supply

Question 5
A supplier type relationship that has eliminated competition is:
A. on going relationships
B. partnerships
C. strategic alliance
D. mergers

Question 6
All of the following are benefits of private trade exchanges EXCEPT:
A. cost
B. security
C. collaboration
D. process improvements

Question 7
All of the following are examples of risk in the supply relationship
EXCEPT:
A. emerging technologies
B. new regulations
C. shifts in consumer demand
D. SRM implementations

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Question 8
Alliances can help improve the overall financial position best by:
A. sharing product development costs
B. increasing revenue while sharing administrative costs
C. decreasing costs related to non-value adding work
D. reducing costs associated with adapting new technology

Question 9
An auction that begins with a high asking price and is lowered until a
buyer is willing to accept is a:
A. stock-market style auction
B. Dutch auction
C. demand management auction
D. forward auction

Question 10
An auction with one buyer and multiple sellers is a:
A. forward auction
B. Dutch auction
C. classic auction
D. reverse auction

Question 11
An evaluation of a supplier against a set of predefined metrics is:
A. joint quality planning
B. supplier certification
C. metric assessment
D. development of supplier quality ratings

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Question 12
Approximately, what percent of alliances fail?
A. 10-20%
B. 30-40%
C. 40-50%
D. 70-80%

Question 13
Close collaboration with key suppliers regarding product design is most
important in which of the following business strategies?
A. differentiation
B. low cost
C. target cost
D. specialization

Question 14
Each of the following is a benefit of SRM software, EXCEPT:
A. tends to work well with existing ERP systems
B. helps reduce the cycle time on sourcing projects
C. makes it easier to select suppliers
D. removes the need for manager involvement

Question 15
Identifying data mining opportunities is a type of activity that likely occurs at
which step during the process of building successful alliances?
A. aligning internally
B. establishing ground rules
C. encouraging collaboration
D. conduct pulse checks

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Question 16
In a diagram showing the contact points between two organizations,
strategic alliances are graphically represented by a:
A. butterfly shaped diagram
B. diamond shaped diagram
C. rectangle shaped diagram
D. circle shaped diagram

Question 17
One general goal of supplier relationship management (SRM) is:
A. ensure mutual profitability while meeting customer needs
B. manage supplier costs
C. build relationships with as many suppliers as possible
D. improve negotiation process

Question 18
Purchasing managers in businesses using strategic sourcing and SRM
perform the following tasks, EXCEPT:
A. negotiate long-term contracts
B. conduct software deployment
C. enforce sourcing contract compliance
D. research strategic partners

Question 19
SRM technology can be applied both to analysis and to:
A. communications
B. purchases
C. transactions
D. certifications

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Question 20
Strategic alliances can best increase organizational expertise by:
A. a higher level of interaction between employees
B. comparing and adjusting worker training techniques
C. teaching best practices in both companies
D. sharing technology that can add to the skill base of both companies

Question 21
Strategic sourcing should be integrated with:
A. the bottom line and strategic goals
B. contract deployment and compliance management
C. profitability goals
D. continuous improvement

Question 22
The biggest role of technology in SRM is:
A. process automation
B. immediate corrective actions
C. integration enabling
D. current system status notification

Question 23
The goal of SRM processing is:
A. streamline the procurement process for goods and services
B. increase then number of processes accomplished in a day
C. remove redundant processes from the system
D. identify key processes that are critical to run the organization

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Question 24
The main difference between traditional purchasing and strategic sourcing
is:
A. traditional sourcing involves finding only established suppliers to
ensure reliable product supply
B. strategic sourcing involves finding and building ongoing
relationships with key trading partners
C. traditional sourcing involves using the same trusted suppliers even
when changes have occurred such as the entry of cheaper
alternatives
D. strategic sourcing involves finding not necessarily the cheapest
suppliers but those who can provide the highest quality of service and
product

Question 25
The type of supplier relationship where there is significant interaction with
competitors is:
A. buy on the market
B. collaboration
C. partnership
D. ongoing relationship

Question 26
Two kinds of commitment in supplier relationships are commitment to
change and commitment to the relationship. Another kind of commitment
is:
A. commitment to communication
B. commitment to exchange of information
C. commitment to true access
D. commitment to independent financials

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Question 27
What is the first step in implementing SRM strategy?
A. define SRM strategy
B. prepare partners
C. conduct pilot
D. develop criteria and enroll partners

Question 28
What type of exchange is MOST appropriate for a business with low
transaction volume for a standardized product?
A. PTX
B. CTX
C. UTX
D. ITX

Question 29
When building successful alliances, for the alliance to be successful and
lasting, the alliance should focus on:
A. managing multifaceted relationships
B. developing stronger collaboration skills
C. understanding potential interactions
D. joint goals

Question 30
When building successful alliances, what is it important to establish so that the
alliance can correctly prepare for change as the alliance evolves?
A. management of the multifaceted relationship
B. resolution of any potential conflicts of interest
C. business process to conduct routine surveys of the alliance
participants
D. spot checks of the participants to estimate the health of the alliance

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Question 31
When implementing a SRM strategy, what is most important for
establishing successful supplier relationships?
A. individual profit maximization
B. infrastructure development
C. communication
D. redefining job descriptions

Question 32
When taking steps towards building successful alliances, aligning
internally should result in:
A. real-time sharing of information methods
B. fewer surprises and greater buy-in by key stakeholders
C. identifying early issues involving key stockholders
D. increased responsiveness

Question 33
Which is most true when talking about the steps in building successful
alliances?
A. Evaluation steps are followed by execution steps and then
preparation steps.
B. Preparation steps are followed by execution steps and then
evaluation and adaption steps.
C. Evaluation steps are followed by preparation steps and then
execution steps.
D. Preparation steps are followed by evaluation steps and then
execution steps.

Question 34
Which is not a clear benefit to strategic sourcing ability to better utilize
technology?
A. cutting cycle times
B. lowering delivery costs
C. increasing inventory turns
D. elimination of low value activities

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Question 35
Which is not part of the ability of strategic sourcing to cross business
boundaries?
A. reduce frequency of orders to lower inventory levels
B. redesign of workflows to eliminate non value added work
C. elimination of redundancies to reduce costs
D. avoidance of volatility in stock levels

Question 36
Which of the following exchanges typically has the most risk to the buyer or
the seller?
A. PTX
B. CTX
C. UTX
D. ITX

Question 37
Which successful strategic supplier relationship characteristic denotes a
formal status with clear objectives and procedures?
A. integration
B. institutionalization
C. investment
D. importance

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Section J: Inventory Planning and Control

Question 1
An inventory costs that may reach 40% of total cost is:
A. ordering cost
B. holding cost
C. setup cost
D. backorders

Question 2
Each of the following variables impact the required safety stock level,
EXCEPT:
A. order frequency
B. forecast accuracy
C. lead time
D. EOQ

Question 3
The added measure of security against unpredicted supply and demand
fluctuations is called:
A. safety stock
B. buffer inventory
C. emergency stores
D. inventory allowance

Question 4
The economic order quantity will depend on which of the following:
A. the varying levels of demand is known
B. all quantity discounts are known and used
C. minimal stock outs due to the order scheduling
D. items will not arrive in stages but all at once

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Question 5
The most reliable method to determine the value of the items in storage is:
A. cycle counting
B. physical counting
C. spot check counting
D. continuous checking

Question 6
The type of inventory analysis that applies the Pareto principle is called?
A. FIFO
B. LIFO
C. 80-20 rule
D. ABC system

Question 7
In an ABC classification of inventory, the inventory that typically accounts for
10% to 20% of the volume but greater than 50% of the value is
classified as:
A. B items
B. A items
C. C items
D. D items

Question 8
Inventory Management is primarily focused on:
A. increasing customer service levels and decreasing inventory turns
B. maintaining customer service levels and decreasing inventory turns
C. inventory cost reductions without sacrificing customer service
performance
D. increasing inventory value and increasing inventory turns

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Question 9
The raw material requirements for a manufacturing operation are
considered:
A. independent demand
B. dependent demand
C. planned orders
D. planned demand

Question 10
All other things being equal, an increase in order quantity:
A. increases the order cost
B. lowers the order cost
C. increases the order frequency
D. lowers total supply chain inventory

Question 11
All other things being equal, an increase in order quantity:
A. increases inventory carrying cost
B. decreases inventory carrying cost
C. decreases customer service levels
D. increases order cost

Question 12
The inventory level equal to demand during replenishment lead-time plus
target safety stock is:
A. the reorder point
B. maximum inventory level
C. minimum inventory level
D. average inventory level

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Question 13
All other things being equal, in a Periodic Review System for
replenishment ordering, an increase in the review period interval results in:
A. increased demand variability
B. increase replenishment quantities
C. decreased replenishment quantities
D. decreased supply variability

Question 14
Which of the following safety stock strategy is most appropriate for a
mature product with stable demand?
A. dynamic safety stock coverage
B. time-dependent safety stock strategy
C. fixed safety stock quantity
D. minimum safety stock strategy

Question 15
Assuming demand and supply variability are unchanged yet replenishment
lead-time increases:
A. total inventory increases in order to maintain customer service levels
B. total inventory decreases will maintaining customer service levels
C. work-in-process inventory increases yet customer service levels
increase
D. work-in-process inventory decreases yet customer service levels are
maintained

Question 16
If forecast error decreases and all other factors including target inventory
levels are unchanged:
A. customer service levels are likely to decrease
B. customer service levels are likely to increase
C. total supply chain inventory increases over the long-term
D. inventory carrying cost increases

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Module 3: Implementation and Operations

Section A: Supply Chain Dynamics

Question 1
All of the following make end-to-end optimization of a retail supply chain
difficult
A. pricing decisions
B. dynamic distribution center design
C. promotion decisions
D. assortment decisions

Question 2
Demand enhancement is achieved by:
A. increasing current product options
B. decreasing unpopular product stocks
C. satisfying unmet customer needs
D. introducing new products

Question 3
Each of the following is an approach to avoiding multiple forecasts,
EXCEPT:
A. information sharing
B. system integration
C. vendor-managed inventory (VMI)
D. transactional processing

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Question 4
Greater market volatility is primarily due to:
A. increasing expected levels of quality
B. increasing power and speed of information
C. decreasing number of high value customers
D. decreasing number of reliable raw material suppliers

Question 5
The bullwhip effect results from:
A. each entity in the supply chain forecasting demand downstream
B. unavoidable variability at the end consumer level
C. seasonality
D. the high rate of obsolescence in fast moving industries like
technology

Question 6
What condition describes the magnification of demand fluctuations up the
supply chain?
A. bullwhip effect
B. demand variability
C. exponential smoothing
D. square root rule

Question 7
What is one way to reduce the contribution of lead time to the bullwhip
effect?
A. reducing order batch size
B. time management
C. prioritization
D. cost reduction

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Question 8
All of the following are sources of demand variability EXCEPT:
A. competition
B. promotions
C. seasonality
D. supply

Question 9
An increase on the lead-time on information will:
A. increase the bullwhip effect
B. decreases the bullwhip effect
C. decreases in-market inventory required to maintain target customer
service levels
D. decrease the risk of planning issues

Question 10
A reduction in demand variability tends to:
A. decrease the bullwhip effect
B. decrease the bullwhip effect
C. increase supply variability
D. decrease supply variability

Question 11
Global expansion is one common source of:
A. decreased supply variability
B. decreased demand variability
C. increased supply variability
D. decreased in-transit inventory

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Question 12
Planning errors represent:
A. an external source of supply variability
B. a random source of demand variability
C. a random source of supply variability
D. an internal source of supply variability

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Section B: Managing Supply from Internal Sources

Question 1
A distribution system wherein retailer enters an order and the distributor
orders from the manufacture is called:
A. pull system
B. push system
C. DRP
D. VMI

Question 2
A review to see if the production schedule is feasible with current plants,
labor, equipment, processes, etc is called a:
A. systems wide capacity check
B. factory condition assessment
C. production plan feasibility evaluation
D. rough-cut capacity check

Question 3
A smaller batch size may lead to:
A. frequent stock outs
B. partially filled delivery trucks
C. reduction of lead times
D. increase in machine downtime

Question 4
All of the following are basic levels of supply chain information EXCEPT:
A. strategic
B. executional
C. operational
D. tactical

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Question 5
All of the following are particular drawbacks to a pull system EXCEPT:
A. orders are likely to be increased as they travel back up the chain
B. orders don’t take into account the suppliers situation
C. the firm doing the ordering knows nothing about the needs of the
other chain partners
D. a tendency to overstock at the retailers end

Question 6
All of the following describe S&OP, EXCEPT:
A. definite near term plan
B. encourages continuous improvement
C. cross-functional process
D. results in lower costs

Question 7
Changes are permissible in a liquid zone as long as:
A. there is no violation of the limits set in the production plan
B. there is permission from the management
C. there is an allowance for changes in the production plan
D. there is available materials to support the changes

Question 8
Counting backward from a due date to account for lead time is called:
A. offsetting
B. MRP
C. postponement
D. optimization

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Question 9
Each of the following are benefits of creating a master production
schedule, EXCEPT:
A. serves as a contract between sales and operations
B. sales force gains assurance that they can commit to delivery
schedules
C. more efficient use of capacity
D. allows marketing to add new products as needed

Question 10
Following completion of rough-cut capacity planning, the MPS is passed to all
of the following EXCEPT:
A. detailed scheduling systems
B. material requirements planning
C. capacity requirements planning
D. distribution requirements planning

Question 11
Manufacturing receives gross demand data from:
A. MPS
B. MRP
C. MRP II
D. DRP

Question 12
MRP software that provides feedback on available capacity is called:
A. MRP II
B. MRP
C. closed-loop MRP
D. MRP optimizer

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Question 13
Part of the lot-for-lot replenishment technique is:
A. producing only the number of components needed
B. producing only enough to replace exactly what has been used
C. producing only when the inventory has reached zero
D. producing only if the complete lot can be sold

Question 14
Rough-cut capacity planning assesses available capacity in all of the
following units of measure EXCEPT:
A. items per day
B. hours of work time available
C. workforce number
D. monetary units

Question 15
S&OP is a unified plan that reconciles all of the functional business plans
typically spanning a period of:
A. 1 to 6 months
B. 6 months to 1 year
C. 1 year to 1.5 years
D. 2 years

Question 16
S&OP was conceptualized in the:
A. 1970s
B. 1980s
C. 1990s
D. 2000s

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Question 17
Tactical plans typically span:
A. 1 to 2 years
B. 10 to 20 years
C. 5 to 10 years
D. 2 to 5 years

Question 18
The chase strategy aims to:
A. develop products that at least match the competition
B. match production to demand
C. refine products according to customer feedback
D. increase machine capability

Question 19
The definition of available time is:
A. the number of production hours in a week
B. the product of hours of operation and the numbers of workers or
equipment
C. the amount of time the machine can be used between maintenance
periods
D. the hours the workers can work before a decrease in efficiency is
recorded

Question 20
The goal of supply chain master planning is:
A. achieving the firm's tactical objectives while minimizing total supply
chain costs
B. daily and weekly planning of supply chain operations
C. transactional processing of supply chain operations
D. minimizing long-term supply chain costs

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Question 21
The longest horizon type of capacity planning is called:
A. rough-cut capacity planning
B. capacity requirements planning (CRP)
C. production activity control (PAC)
D. resource requirements planning

Question 22
The most basic requirement for DRP is:
A. independent demand forecasts
B. complete list of order dates
C. the calculation of all lead times
D. availability of goods

Question 23
The period of time for which plans are made is called the:
A. planning span
B. planning horizon
C. planning scope
D. planning duration

Question 24
The push system can be beneficial by providing system wide coordination of
inventory management but a particular drawback is that:
A. it may lead to overstocking in slow markets
B. it may lead to stock outs in fast markets
C. it is less sensitive to local market condition
D. it is heavily dependent on decisions and forecasts made centrally

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Question 25
The timeframe of a typical strategic plan is:
A. 1 to 2 years
B. 2 to 5 years
C. 5 to 10 years
D. 10 to 20 years

Question 26
Up to half of a supply chain's capital is typically allocated to:
A. manufacturing facilities
B. distribution centers
C. inventory
D. labor

Question 27
What is one input to the lot-for-lot scheduling process?
A. lead time
B. bill of materials
C. planning horizon
D. consumer demand

Question 28
What is one task of the master scheduler?
A. Disaggregate the product groups into plans for individual products
B. Communicate the plans to senior management
C. Work with external suppliers to ensure alignment of goals
D. Develop a finished good forecast to use in planning production

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Question 29
What is the main goal of capacity management?
A. balance demand and supply for cost-effective service
B. determine the number of manufacturing sites to maintain
C. network optimization
D. reduce inventory levels

Question 30
Which is involved in identifying required resources and selecting methods for
freeing up capacity when needed?
A. capacity scheduling
B. capacity management
C. capacity planning
D. capacity control

Question 31
Which is not part of capacity control?
A. comparing output to planned output
B. correcting output imbalances
C. monitoring actual output
D. quality control of output

Question 32
Which of the following are inputs to MRP?
A. master production schedule
B. inventory status
C. lead time
D. sales forecasts

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Question 33
Which of the following schedule dependent demand?
A. master production schedule
B. production plan
C. sales forecast
D. material requirements planning

Question 34
Which provides the complete list of components needed for the
manufacturing of finished goods?
A. ERP
B. DRP
C. BOM
D. ATP

Question 35
Which shows how a product is manufactured and the number/description of
processes involved?
A. product flowchart
B. manufacturing flow sheet
C. production flowchart
D. route sheet

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Section C: Managing Supply from External Sources

Question 1
A PSA (product and service agreement) is between a company and its:
A. high value customers
B. critical suppliers
C. large retailers
D. major distributors

Question 2
Which system is MOST beneficial for building trust across the external
supply chain?
A. SCEM
B. VMI
C. SCV
D. TMS

Question 3
A key requirement for successful VMI is:
A. real-time or near real-time data sharing with suppliers
B. defined boundaries
C. contractual commitments
D. common IT platform

Question 4
When negotiating with external suppliers, all of the following time horizons
should be considered EXCEPT:
A. liquid zone
B. frozen period
C. slushy period
D. immediate period

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Section D: Implementation of Demand Plans

Question 1
All of the following are required for reliable ATP EXCEPT:
A. accurate visibility to finished good inventory
B. accurate visibility to work-in-process inventory
C. accurate visibility to customer orders
D. accurate visibility to raw materials

Question 2
Available-to-Promise is an example of:
A. a tactical system
B. an execution system
C. a strategic system
D. a forecasting system

Question 3
Capable-to-promise differs from available-to-promise by considering:
A. transportation availability
B. capacity availability
C. material availability
D. material availability and capacity availability

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Question 4
How is resupply accomplished in a VMI model?
A. POS data is sent from retailers along with actual orders.
B. Daily actual sales data is sent, vendors are committed to
replenishing inventory without stock outs and without receiving
replenishment orders.
C. Regular scheduled reviews of the on site inventory are performed,
inventory is counted, damaged goods are removed and the
inventory is restocked to predefined levels.
D. Historic data and predictive models are used to forecast stocking
demands.

Question 5
Presently, who typically owns the inventory in a VMI arrangement?
A. manufacturers
B. suppliers
C. distributors
D. retailers

Question 6
The method of deciding when to produce where finished goods go to
inventory awaiting an order is called:
A. make-to-order
B. make-to-stock
C. postponement
D. just-in-time

Question 7
To find the following period available-to-promise (ATP) quantity, one
should use the formula:
A. master production schedule - customer orders
B. master production schedule + customer orders
C. inventory on hand + scheduled receipts - booked orders
D. inventory on hand - scheduled receipts - booked orders

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Question 8
When materials are committed to specific orders, they are in:
A. a solid commitment zone
B. a strict timing zone
C. a frozen zone
D. a liquid zone

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Section E: Continuous Improvement

Question 1
A Kaizen event / Kaizen blitz will involve:
A. a step by step improvement of a limited process area
B. a step by step improvement of the whole process
C. a rapid improvement of a limited process area
D. a rapid improvement of the whole process area

Question 2
A Pareto diagram is often also called:
A. the 80-20 rule
B. root cause analysis
C. fishbone diagram
D. mind map

Question 3
All of the following are reasons for undertaking continuous improvement
EXCEPT?
A. supply chain is constantly changing
B. supply chain management is a collection of processes
C. supply chains move from silos to cross-functional collaboration
D. supply chains are complex global networks

Question 4
Continuous improvement is:
A. a revolutionary process
B. a dramatic change process
C. an evolutionary process
D. an innovative process

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Question 5
In terms of process analysis which is most true?
A. Processes are selected by workers doing actual job.
B. Processes are selected by managers, implemented by workers.
C. Processes are selected by analysts who can see the whole chain.
D. Processes are selected by managers and workers together.

Question 6
JIT eliminates wasted time. Its complementary approach is Lean which
eliminates:
A. wasted materials
B. wasted products
C. wasted worker capability
D. wasted machine capacity

Question 7
Of the following statements, which is the most true?
A. The most successful continuous improvement programs rely on
more than one technique.
B. The most successful continuous improvement programs rely on one
tried and tested technique.
C The most successful continuous improvement programs change
techniques once the old technique has achieved its goals.
D. The most successful continuous improvement programs always
seek the better technique.

Question 8
Six sigma specifically aims to achieve:
A. zero customer complaints
B. near perfect quality
C. zero product returns
D. near perfect products and services

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Question 9
Takt time is:
A. available production time divided by customer demand
B. available production time divided by supply inventory
C. customer demand multiplied by production time
D. available production time multiplied by customer demand

Question 10
The best way to improve any supply chain is:
A. continuous improvement through big, planned leaps
B. continuous improvement through small, carefully defined steps
C. continuous improvement through isolating the weakest, the next
weakest, and so on.
D. continuous improvement through a series of milestones

Question 11
The fourth stage of continuous improvement is:
A. benchmark selection
B. progress assessment
C. project plan circulation
D. implementation and change management

Question 12
There are five phases to the six sigma process for conducting continuous
improvement, known by the acronym DMAIC. The A stands for:
A. assess
B. appraise
C. adapt
D. analyze

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Question 13
Waste, in the world of Lean thinking, is:
A. anything that fails to live up to the expectation of the customer
B. anything that fails to meet the standards of the company
C. anything that fails to add value in the eyes of the customer
D. anything that fails to meet the planned design

Question 14
What is one of the most important foundations of quality improvement
initiatives?
A. visibility and access to data
B. speed of implementation
C. focus on financial impact
D. collaboration with supply chain partners

Question 15
What statement best defines the term Continuous Process Improvement
(CPI)?
A. a never ending effort to expose and eliminate root causes of
problems
B. a training program that ensures management skills continue to
remain current
C. implementation of cutting edge IT systems and applications
D. a once a year review of the state of operations and
recommendations for future projects

Question 16
Which of the following is a continuous improvement approach to reducing
process variability aimed at producing a defect rate of less than 3.4
defects per million?
A. Just-in-Time (JIT)
B. Six-Sigma
C. Lean
D. SCOR

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Question 17
Which of the following is a standard technique for defining and analyzing a
process?
A. process mapping
B. root cause analysis
C. defect measurement
D. brainstorming

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Answers

Module 1: Fundamentals of Supply Chain

Management

Section A: Supply Chain Management Concepts

1. A

2. B
3. D

4. B
5. B

6. A
7. D

8. D

9. D

10. D

11. A
12. D

13. C

14. D

15. A

16. A

17. A
18. D

19. D

20. D

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21. B

22. A

23. C

24. A

25. A
26. C

27. A

28. A

29. C

30. D
31. C

32. D

33. D

34. C

35. C

36. B
37. B

38. C

39. B

40. A

41. D
42. D

43. A

44. C

45. A

46. B

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47. B

48. A

49. A

50. A

51. A
52. B

53. D

54. D

55. B

56. B

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Section B: Supply Chain Alignment with Business Strategy
1. A

2. A

3. A

4. D
5. A

6. D

7. D
8. D

9. A
10. B

11. B
12. C

13. D

14. C

15. C

16. C
17. A

18. C

19. B

20. A

21. D

22. D
23. D

24. D

25. C

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26. C

27. B

28. B

29. D

30. C
31. A

32. D

33. C

34. B

35. A
36. A

37. A

38. A

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Section C: Supply Chain Design and Improvement
Considerations
1. B

2. D

3. D

4. D

5. A

6. A
7. C

8. A

9. A

10. D

11. A

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Section D: Inventory Management
1. D

2. A

3. C

4. C
5. B

6. A

7. D
8. A

9. D
10. A

11. D
12. B

13. B

14. D

15. A

16. B
17. A

18. B

19. D

20. B

21. D

22. B
23. A

24. B

25. B

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Section E: Logistics Fundamentals
1. D

2. B

3. B

4. C
5. A

6. A

7. A
8. B

9. B
10. D

11. D

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Section F: Market Segmentation
1. A

2. C

3. D

4. C
5. D

6. B

7. D
8. B

9. B
10. A

11. C
12. D

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Section G: Demand Planning
1. B

2. A

3. C

4. D
5. C

6. D

7. A
8. D

9. B
10. C

11. A
12. A

13. D

14. C

15. B

16. A
17. C

18. D

19. A

20. C

21. D

22. C

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Section H: Customer Relationship Management (CRM)
Concepts
1. B

2. C

3. D

4. C
5. C

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Section I: Supply Management Concepts
1. B

2. A

3. A

4. D
5. D

6. A

7. D
8. D

9. D
10. C

11. A
12. C

13. D

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Module 2: Supply Chain Strategy, Design and
Compliance
Section A: Sustainability
1. B

2. D
3. A

4. A

5. C

Copyright © 2013 Real World Supply Chain LLC 180

Section B: Risk Management
1. C

2. D

3. B

4. B
5. B

6. B

7. D
8. D

9. D

Copyright © 2013 Real World Supply Chain LLC 181

Section C: Globalization
1. B

2. A

3. A

4. A
5. C

6. C

7. B
8. B

9. B

Copyright © 2013 Real World Supply Chain LLC 182

Section D: Logistics
1. B

2. A

3. D

4. D
5. D

6. D

7. D
8. B

9. B
10. A

11. B
12. B

13. A

14. C

15. C

16. C
17. A

18. B

19. B

20. A

21. C

22. A
23. D

24. D

25. A

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26. A

27. D

28. C

29. B

30. D
31. B

32. D

33. B

34. C

35. B
36. A

37. A

38. B

39. B

40. C

41. D
42. B

43. B

44. C

45. C

46. B

Copyright © 2013 Real World Supply Chain LLC 184

Section E: Managing the Supply Chain
1. D

2. A

3. D

4. C

5. C

6. B

7. C
8. D

9. D
10. C

11. B
12. A

Copyright © 2013 Real World Supply Chain LLC 185

Section F: Technology
1. B

2. B

3. B

4. C
5. B

6. B

7. D
8. B

9. B
10. A

11. C
12. B

13. D

14. C

15. A

16. A
17. B

18. D

19. B

20. D

21. B

22. A
23. B

24. D

25. A

Copyright © 2013 Real World Supply Chain LLC 186

26. B

27. B

28. B

29. D

30. D
31. D

32. C

33. D

34. A

35. A
36. A

37. A

38. D

39. B

40. C

41. B
42. A

43. A

44. C

45. B

47. D
48. A

49. D

50. A

51. A

52. A

Copyright © 2013 Real World Supply Chain LLC 187

53. B

54. C

55. B

56. D

57. C
58. D

59. C

60. B

61. B

62. C
63. A

64. B

65. B

66. D

67. C

68. A
69. D

70. A

71. C

72. A

73. D
74. B

75. C

76. D

77. A

78. B

Copyright © 2013 Real World Supply Chain LLC 188

79. B

80. B

81. A

82. C

83. D
84. D

85. C

86. A

87. C

88. A
89. C

90. C

91. D

92. B

93. B

94. D
95. D

96. C

97. A

98. C
99. C

100. D

101. A

102. B

104. D

105. D

Copyright © 2013 Real World Supply Chain LLC 189

106. C

107. C

108. A

109. D

110. A

111. D

112. D

113. A

114. C

115. C

116. B

117. B

118. B

119. B

120. A

122. C

123. B

124. C

125. A

126. D

127. A

128. D

129. B

130. D

131. B

132. B

Copyright © 2013 Real World Supply Chain LLC 190

133. B

134. A

135. C

136. A

137. C

138. A

139. B

140. B

Copyright © 2013 Real World Supply Chain LLC 191

Section G: Influencing and Prioritizing Demand
1. A

2. A

3. D

4. C
5. D

6. A

7. D
8. D

9. B
10. B

11. B
12. A

13. A

14. B

15. C

16. B
17. C

18. D

Copyright © 2013 Real World Supply Chain LLC 192

Section H: Customer Relationship Management (CRM)
1. C

2. A

3. A

4. D
5. D

6. D

7. B
8. C

9. D
10. B

11. B
12. B

13. D

14. B

15. D

16. B
17. A

18. B

19. A

20. A

21. D

22. C
23. B

24. A

25. D

Copyright © 2013 Real World Supply Chain LLC 193

Section I: Supplier Relationship Management (SRM)
1. D

2. B

3. D

4. A
5. D

6. A

7. D
8. B

9. B
10. D

11. B
12. C

13. A

14. D

15. C

16. B
17. A

18. B

19. C

20. D

21. B

22. C
23. A

24. B

25. A

Copyright © 2013 Real World Supply Chain LLC 194

26. A

27. A

28. D

29. D

30. C
31. C

32. B

33. B

34. B

35. A
36. D

37. B

Copyright © 2013 Real World Supply Chain LLC 195

Section J: Inventory Planning and Control
1. B

2. D

3. A

4. D
5. A

6. D

7. B
8. C

9. B
10. B

11. A
12. A

13. B

14. C

15. A

16. B

Copyright © 2013 Real World Supply Chain LLC 196

Module 3: Implementation and Operations
Section A: Supply Chain Dynamics
1. B

2. C
3. B

4. B
5. A

6. A

7. A

8. D

9. A
10. A

11. C
12. D

Copyright © 2013 Real World Supply Chain LLC 197

Section B: Managing Supply from Internal Sources
1. A

2. D

3. C

4. B
5. D

6. D

7. A
8. A

9. D
10. D

11. D
12. C

13. A

14. D

15. C

16. B
17. D

18. B

19. B

20. A

21. D

22. A
23. B

24. C

25. C

Copyright © 2013 Real World Supply Chain LLC 198

26. C

27. A

28. A

29. A

30. C
31. D

32. A

33. D

34. C

35. D

Copyright © 2013 Real World Supply Chain LLC 199

Section C: Managing Supply from External Sources
1. B

2. C

3. A

4. D

Copyright © 2013 Real World Supply Chain LLC 200

Section D: Implementation of Demand Plans
1. D

2. B

3. D

4. C
5. D

6. B

7. A
8. C

Copyright © 2013 Real World Supply Chain LLC 201

Section E: Continuous Improvement
1. C

2. A

3. D

4. C
5. B

6. A

7. A
8. D

9. A
10. B

11. D
12. D

13. C

14. A

15. A

16. B
17. A

Copyright © 2013 Real World Supply Chain LLC 202